U.Today is showing warning signs of a possible local price reversal as a worrying candlestick pattern has developed. This reversal pattern, which was seen at the highest point of the most recent local uptrend, indicates that a decline may be on the horizon.
When the purchasing power drops sharply, the candlestick structure usually appears, suggesting that Ethereum's bullish momentum may be losing steam. The chart shows that before giving in to selling pressure, Ethereum recently struggled to break through important resistance levels, especially around the $2500 mark.
As a result, a traditional reversal pattern developed, which frequently signals the beginning of a price decline. This technical signal alerts traders to the possibility that selling pressure on the asset may increase in the coming days, particularly if overall market conditions do not improve. The noticeable decrease in trading volume is another element that increases the possibility of a reversal. Buying volume lagged behind Ethereum’s price attempt to rise, suggesting that buyers’ enthusiasm has waned.
Ethereum looks susceptible to a pullback as there seem to be fewer buyers supporting the current price levels. Additionally, the overall market sentiment is still confused, with many traders taking a cautious stance due to macroeconomic issues and possible shifts in investor sentiment.
Whales are not prepared
Recent on-chain data indicates that Solana whales, which are often considered a major force behind price momentum, seem to be losing their bullish outlook. As shown by the market, Solana whales lack long-term confidence as they quickly sell their holdings when the price hits local highs.
According to the latest data, a whale has withdrawn 206,951 SOL, or approximately $29.3 million, at an average price of $142 from the MEXC and Binance exchanges since February 7. The most intriguing part is that even though 115,135 SOL has been deposited, the remaining amount appears to have been sold or is missing.
This selling activity implies that not even major holders are willing to bet on long-term gains in Solana prices. The fact that SOL is unable to maintain significant bullish momentum is supported by the price chart. It is currently trading at $133, but is still significantly below its important moving averages after a brief spike. Resistance has been provided by the 50-day and 100-day EMAs, and the 200-day EMA at $149 has proven to be an even bigger hurdle.
The probability of a bullish breakout is further reduced by the continued rejection of these levels. Moreover, SOL is approaching the bearish zone but remains in neutral territory, according to the Relative Strength Index (RSI), which is currently hovering around 46.
aims for $60,000
After regaining its earlier gains, Bitcoin looks set to move towards the crucial $60,000 mark. While traders with a bullish outlook consider this an exciting prospect, there are obstacles in the way. At the moment, a number of important factors are affecting Bitcoin's market dynamics, so anyone betting on this move should be cautious.
Extreme conditions in the market were indicated over the weekend when the Bitcoin Risk Index reached 100. With a slight retracement underway, this level suggests that Bitcoin may be going through a brief overheating phase. However, it could result in a clear bottom and pave the way for a powerful upward move if the retracement continues.
According to the chart, Bitcoin is currently trading at $56,960 after a brief rally that is yet to fully reclaim key resistance levels. Bitcoin price is finding resistance at the 200-day EMA and the trend line that works as support. These elements imply that while reaching the $60,000 mark is feasible, it might take some time to overcome these hurdles.
This article was originally published on U.Today
