Vladimir Smerkis | Jul 02, 2017 05:43AM ET

Regardless of the overall correction of the cryptomarket, encountered a harsh and severe drawdown. The following pattern is currently persistent at ETH:

Recent support zone of $310 has now become a zone of resistance. If the $310 level is surpassed and the subsequent retest on volumes is observed, a lucrative point for opening long positions will set up. Maintaining a close stop-loss level, risk/return ratio might be very promising.

It is absolutely plausible that no surpassing of the $310 level will be observed, notwithstanding the general up-trend. In this situation, as classic technical analysis puts it, a point for opening short positions will set up.

Take a moment to consider the $225 zone, which resembles a turning point with a test. Currently, it looks like a strong support level, which is well proved, looking at the historic price movement. This level will be crucial provided that the price of ETH proceeds to fall.

Negative news sentiment in ETH is an important issue to consider.

Currently, a struggle for $310, which is a highly vital level, can be observed in the market. Although the price is growing and sometimes the signals might seem to be unambiguous, be very attentive when opening short positions.

Likewise, in July more information about the release of ETH is anticipated. Doubtlessly, the news and releases will be positive and the market will react in the same fashion.

LTC is currently establishing a $36 support zone. Consider the high level of volatility in at this price, which proves the importance of retesting it. If the price barely touches the level and you open the position afterwards, it is likely a stop-loss order will be executed due to high volatility. However, when the level is tested again, you will be confident about it and the signal will most likely be accurate.

The $36 zone is extremely strong. It is very likely that next month a steadier $36-$48 channel at will be seen. Deals from those levels will be a lucrative insight on this channel.

At the same time, $48 strongly resembles a resistance point. So consider the volumes when opening positions from that zone.

Fundamentally, everything is positive at LTC and the news sentiment is positive as well. This is proven by the $2 bn market cap. We can make the assumption that LTC is likely to be an attractive hedge option very soon.