Temporary Respite Awaits Ethereum and Solana Find Out More
The second largest cryptocurrency, Ethereum, has recently experienced a slight rebound, according to Crypto World analyst Josh. However, it has yet to confirm a complete reversal of its downward trend.
Josh noted that Ethereum continues to make lower highs and lows, encountering resistance from a descending line. In order to outperform Bitcoin, Ethereum needs to break above this resistance line and form higher highs. Josh also discussed the price action of Solana, pointing out a bullish indication.
Taking a closer look at Ethereum’s recent movements on the daily timeframe, Josh mentioned that despite a significant price drop, it found support around $3350, which represents the 50% retracement level. Strong resistance remains at around $3650.
At present, Ethereum appears to be trapped in a sideways pattern within a larger downward trend. Such sideways movements are common during downward trends. On the 12-hour chart, Ethereum displays a bullish sign known as divergence, where the price makes lower lows but the RSI indicator shows higher lows. This suggests the possibility of a short-term upward movement or more sideways trading.
Ethereum is currently forming a pattern that could result in either a bullish breakout or continued sideways movement. There is also bullish divergence present, indicating the potential for a price increase if Ethereum breaks above the resistance at $3590. However, in order to become more bullish, it would need to overcome the strong resistance zone between $3600 and $3650.
Turning to Solana, Josh noted that it recently exhibited a new bullish divergence on the 8-hour timeframe. However, it is currently facing strong resistance in the range of $140 to $144, which previously served as a support level before breaking down. As expected, this zone is now acting as resistance.
Due to the bullish divergence suggesting potential upside, it is likely that Solana will consolidate sideways in the short term, possibly over the next few days. This consolidation is taking place within a broader short-term bearish trend. Key support levels to keep an eye on are between $120 and $128, where recent bounces have occurred.
Even if Solana breaks out above $144, the upper boundary of the current resistance zone, it will still encounter significant resistance around $160. To become more bullish in the short term, Solana would need to convincingly surpass this $160 level. Overall, the short-term trend for Solana remains bearish for now, but there is potential for temporary relief or sideways movement due to the observed bullish divergence.
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