The market is finally showing signs of recovery, but not all assets are participating
Ethereum has wiped out any sustained gains it has accumulated. The ETH/USD price chart paints a grim story of the digital asset falling rapidly from its peak and reverting to levels that call into question the sustainability of its previous growth.
A sharp drop in Ethereum price is a significant bearish signal. This is most likely due to Ethereum’s recent historical underperformance, reflecting the market’s reluctance to invest at historic highs. This lack of traction and inability to initiate a recovery highlights the vulnerability of Ethereum price in the current market environment.
Focusing on the technical aspects, Ethereum has broken above around $2,350, which was once considered a strong support level. This price point, which previously saw significant buying interest, has now been breached, causing a knock-on effect as the asset searches for new support. The next important support level is around $2,175, which could see some buyers arresting the decline.
Conversely, any attempt to recover would first encounter resistance near $2,338, which is currently the lower end of the consolidation range before the fall. A close above this level with significant volume could signal a temporary respite in selling pressure. However, the real test lies in the previously established higher resistance level around $2,500, where ETH has struggled to maintain upward momentum.
Bitcoin is ready to fight
The recent candlestick formation paints a scenario where Bitcoin has reached a significant resistance level and is poised to confirm a bearish trend or begin a significant recovery.
This chart shows Bitcoin’s recent decline as it loses its foothold in the high price tier it previously occupied. However, even during this decline, Bitcoin is showing signs of resilience. The latest candlestick indicates a possible reversal as it remains around a key support level that can be identified around $37,000, an area where buyers have historically intervened.
If the price sustains above this point, it could stimulate new buying interest and send the price towards the immediate resistance level near $41,000. The importance of regaining this threshold cannot be underestimated as it could invalidate the bearish outlook and signal a trend reversal.
As for upside resistance, the $43,000 and $46,000 price levels stand out as notable barriers that Bitcoin needs to break through to solidify its strong recovery story. Achieving such a milestone could positively sway market sentiment and create optimism among investors.
Moving averages provide additional insight and suggest a possible bullish crossover if current momentum continues. This scenario would be further supported by an increase in trading volume, which usually accompanies a decisive trend change.
Solana among leaders
Solana is showing early signs of recovery, pointing to a bullish scenario amid a broader market recovery. However, investors are aware of the possibility of a ‘dead cat bounce’ and are treading cautiously as the volume profile suggests restraint.
Analyzing the SOL/USDT chart, we can see that Solana has established a local support level around the $70 price mark. It has been marked by multiple touches at this level over the past few weeks, each time resisting further declines.
On the contrary, during Solana’s consistent uptrend, local resistance can be seen around the $96 level, which previously served as support.
Price action is currently sandwiched between the 50-day moving average, which acts as dynamic resistance, and the 200-day moving average, which acts as potential dynamic support. As the gap between these averages narrows, it can put pressure on price movements and lead to a volatility breakout.
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