Solana and Ethereum recorded sharp declines, as most of the cryptocurrency market sank into the red in Friday trading. The decline was sparked by the Federal Reserve hinting at reducing the speed and scale of monetary easing next year, 2025.
Despite the severity of the current decline, many traders and investors may see it as an opportunity to buy from the bottom, given that the general outlook in the long term remains very positive for the cryptocurrency sector in general.
Below we will take a look at the most important technical levels to watch to determine the best entry and exit levels for trades.
Solana price technical levels
Solana SOL price was moving in a correction wave inside a descending price channel. However, the decline has accelerated significantly in the past two days, which led to breaking the lower border of this channel.
The price also broke the strong support level of 38.2% Fibonacci level at $200, which matches the previous yearly high of 2024.
The price is currently trading in a strong support area at $180-$185 consisting of previous highs, the 50% Fibonacci retracement level and slightly below them the uptrend line that started at the beginning of last September.
This area should be watched carefully, and how the daily candle closes above or below the levels, especially the uptrend line. If the price holds above it, it will form a solid base for a return to the upside. If it breaks it, it may open the door to more decline.
Ethereum ETH Price Technical Levels
In the previous analysis, we discussed the formation of the double top reversal pattern at the pivotal resistance level of $4000. The neckline is at the support level of $3580, which corresponds to the 23.6% Fibonacci retracement.
I was wrong when I said that this possibility was weak, as the price fell after breaking the neckline.
Fibonacci retracement lines form the next most important support levels for the Ethereum ETH price, especially the 61.8% level at $2,870. Which is likely to form a strong base for the rise. Of course, if the price manages to break the $3,000 level first.