Ethereum (ETH) loses all gains, Bitcoin (BTC) not ready to give up $40,000, Solana (SOL) comeback begins
U.Today – Ethereum has erased the gains it had accumulated over a sustained period. The price chart paints a gloomy narrative as the digital asset has rapidly declined from its peak, retreating to levels that question the sustainability of its previous growth.
The sharp drop in Ethereum price is a significant bearish signal. It reflects the market's hesitation to invest at previous highs, likely due to the poor performance Ethereum has shown in the recent past. This lack of traction and inability to initiate a recovery underscores the vulnerability of Ethereum's price in the current market climate.
TradingView's ETH/USD Chart Focusing on the technicals, Ethereum has broken through what was once considered a strong support level at around $2,350. This price, which previously generated substantial buying interest, has now been surpassed, causing a cascading effect as the asset seeks new support. The next critical support level is around $2,175, where buyers could emerge to stop the decline.
Conversely, any recovery attempt will first encounter resistance around $2,338, a level that now marks the lower boundary of what was a consolidation range before the decline. A close above this level on significant volume could indicate a temporary respite from selling pressure. However, the real test lies at the higher resistance levels, previously established around $2,500, where ETH struggled to maintain bullish momentum.
Ready to fight
The recent candle formations portray a scenario where Bitcoin is flirting with a critical resistance level, poised to confirm a downtrend or initiate a substantial recovery.
The chart illustrates Bitcoin's recent decline as it lost its foothold at the higher price levels it previously occupied. However, amid this downward movement, Bitcoin is showing signs of resistance. The latest candles indicate a possible reversal as they hover around a significant support level, which can be identified at approximately $37,000, a region where buyers have historically intervened.
A sustained hold above this point could catalyze renewed buying interest, which could push the price towards the immediate resistance level around $41,000. The importance of reclaiming this threshold cannot be underestimated as it can invalidate the bearish outlook and signal a trend reversal.
As for overhead resistances, the $43,000 and $46,000 price levels stand out as notable barriers that Bitcoin would need to overcome to cement a strong recovery narrative. Achieving such milestones could positively influence market sentiment, potentially ushering in a wave of optimism among investors.
The moving averages offer additional information, suggesting a possible bullish crossover if the current momentum persists. This scenario would be further supported by an increase in trading volume, which typically accompanies decisive trend changes.
between leaders
Solana shows signs of a nascent recovery, presenting a bullish scenario amid a broader market recovery. However, investors are proceeding cautiously, mindful of the potential for a “dead cat bounce” as volume profiles indicate moderation.
Analyzing the SOL/USDT chart, we notice that Solana has established a local support level around the price of $70. This is characterized by multiple touches of this level in recent weeks, each time resisting further downward movement.
On the other hand, local resistance can be identified near the $96 level, which previously acted as support during Solana's ongoing uptrend.
The price movement is currently between the 50-day moving average which acts as dynamic resistance and the 200-day moving average which acts as potential dynamic support. Narrowing the gap between these averages could restrict price action, possibly leading to a breakout in volatility.
This article was originally published on U.Today.
