U.Today – is clearly gearing up for a potential surge towards a new yearly high as the price of the second-largest cryptocurrency approaches $4,000. Previously, some analysts claimed that ETH will reach $4,500 before ETF trading activates.
Ethereum has also continued to rise above the $3,800 level, now trading around $3,906. This bull run is rather supported by a considerably high amount of volume, indicating good buying interest. Currently, the level has found strong support at the 50-day EMA, which sits around $3,225, and the 100-day EMA around $3,170, which supports ETH.
At the moment, Ethereum's RSI is at 72, indicating that ETH is overbought. It may indicate a pullback, but the general market sentiment remains the same. The recent price action saw a clear breakout of the consolidation, with more targets at higher resistance levels for ETH.
But it has to maintain the momentum to continue the journey towards $4,500 and penetrate above the psychological price level of $4,000. If it breaks completely, the next crucial resistance we are seeing in the $4,200 range could open the doors for ETH towards $4,500. The current levels to watch are $3,800 and $3,500 on the downside, which should hold to maintain the bullish bias.
The road to $70,000
Bitcoin has failed to stay above or even near the crucial $70,000 price level and is currently consolidating around $69,000. Unfortunately, this is a sign of declining power and could hint at some bearishness in the future.
This implies that the digital asset is failing to maintain levels above $70,000, a level that indicates the continuation of massive buying pressure. Looking at the recent price action, Bitcoin has once again failed to hold above the $70,000 level, where the most significant resistance lies.
The consolidation can be visibly seen on the daily chart, where Bitcoin is trading levels of just under $69,000. On top of that, the fight to keep gains above the psychological level continues to gain momentum as it consolidates at that level, with the 50-day moving average.
Failure to break above the $70,000 resistance, along with consolidating price action, may also indicate possible bearish trends. If Bitcoin loses the battle to stay above the levels beyond the immediate support at $68,000, it could test the lower support levels around $65,000 and $62,000, as shown by the moving averages. Increasing selling pressure under these moving averages is likely to drive further losses towards the $60,000 level.
shock support
Solana is approaching a strong support level in the form of the 26 EMA. It is not the first time that SOL price is going to test this resistance level as, in the past, SOL reached around $160 and emerged successfully.
Solana is testing such a strong support level in the form of the 26 EMA. It would not be the first time that SOL price has reached this resistance level. This has been the case in the past, when SOL reached a price of around $160 and went up successfully. Solana is currently trading around $164, which is close to a major support zone extended by the 26-day EMA.
This has acted strongly in the past, especially around the $160 zone, from where SOL managed to find strength and rise. Therefore, one of the very important technical indicators that traders follow very closely is the 26 EMA as it typically provides a cushion during a bull run and resistance when in a downtrend.
Solana has been quite volatile price-wise, but has remained higher over the past few weeks of trading. Furthermore, the price has retreated to levels around $190, testing the 26 EMA support. Not far away, the 50-day EMA sits at $153 and in case of failure of the 26 EMA days, that's the next line of defense.
This article was originally published on U.Today.
