Ethereums Price Shows Bearish Pattern Again Solanas Framework Shifts to Bullish
The cryptocurrency Ethereum, which is the second largest by market cap, is currently experiencing a sideways movement similar to Bitcoin. Although there has not been a confirmed reversal in the bearish trend, Josh from Crypto World suggests that this may be just a temporary pause, based on previous patterns.
On the daily time frame, Ethereum’s price is fluctuating between the 50% retracement level, acting as support at around $3,350, and the previous Fibonacci level at approximately $3,480, which serves as resistance, according to Josh.
There is an active bullish divergence occurring, providing some relief from the short-term bearish trend. However, Ethereum is still struggling to break through the critical resistance level at around $3,450, despite facing rejection at this level multiple times. Even if it manages to surpass $3,450 and $3,480 with confirmed candle closes, it will encounter strong resistance between $3,600 and $3,650. This situation is reminiscent of a previous period where a short-term bullish divergence did not lead to a trend reversal.
To confirm a bullish trend reversal, Ethereum would need to show other signals such as breaking above significant resistance levels, like $3,650, which has not yet happened. While the bullish divergence is present, the overall trend remains bearish, resulting in choppy sideways price action in the short term.
On a different note, Solana, another cryptocurrency, recently broke out above the critical resistance area between $140 and $144. After retesting and holding this area as new support, Solana formed an inverse head and shoulders pattern.
To confirm this pattern, Solana needs to surpass the neckline around $151-$152 with candle closes. If this is confirmed, the pattern indicates a bullish price target of around $180, representing an 18-19% increase from the breakout point. However, there are resistance levels to overcome between the current price and the target, including levels around $160, between $170-$175, and $183-$187. Nonetheless, Solana’s price structure is turning bullish as it transforms previous resistance into new support.
In summary, Ethereum is currently experiencing a sideways movement, and while there are signs of a bullish divergence, the overall trend remains bearish. Solana, on the other hand, has shown a breakout and is forming a bullish pattern, although it still needs to surpass certain resistance levels.