The second largest cryptocurrency Ethereum has shown a small bounce recently, as observed by the analyst Josh of Crypto World. However, it hasn’t confirmed a full reversal from its downtrend. He said that Ethereum continues to make lower highs and lows, facing resistance from a descending line. To see Ethereum perform better than Bitcoin, it needs to break above this resistance line and form higher highs. Josh also discussed Solana’s price action, citing a bullish indication.
Ethereum Price Analysis:
Discussing Ethereum’s recent movements on the daily timeframe, he said that despite a big drop in price, it found support around $3350, which is the 50% retracement level. Resistance remains strong around $3650.
Currently, Ethereum seems to be stuck in a sideways pattern amid a larger downward trend. These sideways movements are typical during downward trends. 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 move or more sideways trading.
Ethereum is forming a pattern that could lead to either a bullish breakout or continued sideways movement. There’s also bullish divergence here, indicating a potential for price increase if Ethereum breaks above the resistance at $3590. However, it needs to surpass the strong resistance zone from $3600 to $3650 to become more bullish.
What’s next for Solana?
The analyst said that Solana has recently shown a new bullish divergence on the 8-hour timeframe. However, Solana is currently facing strong resistance in the range of $140 to $144, which was previously a support level before it broke down. As expected, this zone is now acting as resistance.
Due to the bullish divergence indicating potential upside, it’s likely that Solana will consolidate sideways in the short term, possibly over the next few days. This consolidation is occurring within a broader short-term bearish trend. Key support levels to watch are between $120 to $128, where recent bounces have occurred.
Even if Solana breaks out above $144, the upper boundary of the current resistance zone, it still faces significant resistance around $160. To turn more bullish in the short term, Solana would need to surpass this $160 level convincingly. Overall, the short-term trend for Solana remains bearish for now, but there’s a potential for a temporary relief or sideways movement due to the bullish divergence observed.
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