Ethereum
Temporary relief for Ethereum and Solana on the horizon; Details inside
The second largest cryptocurrency Ethereum has recently shown a slight rebound, as observed by analyst Josh of Crypto World. However, it has not confirmed a complete reversal of its downward trend. He said that Ethereum continues to make lower highs and lower lows, facing resistance from a descending line. To see Ethereum perform better than Bitcoin, it must break above this resistance line and reach higher highs. Josh also discussed Solana’s price action, citing a bullish indication.
Ethereum Price Analysis:
Discussing Ethereum’s recent movements on the daily time frame, he said that despite a sharp price decline, it found support around $3,350, which is the 50% retracement level. Resistance remains strong around $3,650.
Currently, Ethereum appears to be stuck in a sideways trend amid a broader downtrend. These sideways movements are typical of downtrends. On the 12-hour chart, Ethereum shows a bullish sign called divergence, where the price makes lower lows but the RSI indicator shows higher lows. This suggests a possible short-term upward movement or more sideways trading.
Ethereum is forming a pattern that could lead to either a bullish breakout or continued sideways movement. There is also a bullish divergence here, indicating potential for price increases if Ethereum breaks above resistance at $3,590. However, it needs to surpass the strong resistance zone at $3,600 to $3,650 to become more bullish.
What’s next for Solana?
The analyst said that Solana recently showed a new bullish divergence on an 8-hour time frame. However, Solana is currently facing strong resistance between $140 and $144, which was previously a support level before it broke. As expected, this area now acts as resistance.
Due to the bullish divergence indicating upside potential, it is likely that Solana will consolidate sideways in the short term, perhaps over the next few days. This consolidation is occurring as part of a broader short-term downtrend. The main support levels to watch are between $120 and $128, where recent rebounds have occurred.
Even if Solana exceeds $144, the upper limit of the current resistance zone, it still faces significant resistance around $160. To become more bullish in the near term, Solana would need to convincingly break above this $160 level. Overall, Solana’s short-term trend remains bearish at the moment, but there is potential for temporary relief or sideways movement due to the observed bullish divergence.
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