U.Today – As it looks to reverse its recent downtrend, it has recently bounced off its 200-day EMA, signaling potential strength. This development comes after SOL discovered support at this important moving average, which has historically served as a reliable floor for the asset’s price.
The $150 level seems to be the next important level to watch given the current technical setup. The bounce is accompanied by a clear bearish trend in volume, which indicates a possible decrease in selling pressure and opens the door for a longer-term bullish move.
Still, the convergence of the exponential moving averages (EMAs) on the chart is notable. A phase of high volatility is often preceded by a close convergence of the moving averages, particularly the short-term ones. This convergence suggests that a breakout in either direction may occur, while the market is still in a consolidation phase. In the long term, the $150 threshold is critical.
This is a psychological barrier as well as a strong correlation with recent price spikes where bulls encountered resistance. If Solana manages to break through and sustain above this level, it may signal the beginning of a new bullish phase and increase buyer interest. If prices fall, the 200-day EMA will remain a crucial support level. A drop below this moving average could trigger a retest of lower levels, possibly shaking out weaker ones if Solana fails to maintain its current momentum.
Facing death?
The possible formation of a death cross for Ethereum suggests that the market is about to reach a turning point. When a short-term moving average (usually the 50-day EMA) crosses below a long-term moving average, such as the 200-day EMA, it is called a death cross.
This pattern is frequently interpreted as a bearish indication that there may be further downward pressure on the asset. Ethereum’s price action has been erratic, with momentum declining over the past few weeks, according to the official chart. The 50-day EMA could confirm the death cross and indicate an extended downtrend for ETH if it falls below the 200-day EMA.
The EMAs are gradually converging. What is particularly worrying in the case of Ethereum is its lack of momentum. ETH has struggled to maintain its upward trajectory after a strong rally at the beginning of the year, and recent price movements have reflected the weakness and uncertainty in the market.
The bulls may not have enough strength to push the price higher because the trading volume has also been relatively low. The death cross could drastically weaken the value of ETH and force it to retest lower support levels should it materialize.
Investors and traders may start to move away from Ethereum in favor of safer or more promising investments. The death cross is a bearish signal, but it is important to remember that it does not always portend further losses. Ethereum's next move will also depend on external factors, overall sentiment, and market conditions.
Still relevant
Bitcoin is still holding its own despite what appears to be a slow performance; it is currently going through a consolidation phase rather than a defined uptrend or downtrend.
Bitcoin has been trading in a tight range for the past few months with little movement in either direction. But traders should be aware that this sideways movement has created two critical price levels. The $68,000 value, which represents the upper limit of the current consolidation range, is the first important level to pay attention to.
A break above this barrier would suggest a potential breakout and could mark the beginning of a new bullish leg for Bitcoin. This level has been tested multiple times, making it a crucial resistance point that can determine Bitcoin’s future direction. On the other hand, the lower limit of the range is at $52,900. To prevent BTC from falling into a more obvious downtrend, this level has served as a solid support.
If Bitcoin fails to hold above this support level, a deeper correction could be triggered, which could add to market pessimism. The fact that Bitcoin is currently trading closer to the middle of this range indicates that the market is still unsure of which way to go. A breakout in either direction could determine the course of Bitcoin’s price movement in the coming weeks, so traders should keep an eye on these two levels.
This article was originally published on U.Today
