Although the market was somewhat shocked, Ethereum's plunge to $3,100 was not totally unexpected. Initially there was hope following the launch of Ethereum spot ETFs, but the price action since then has mostly been negative.
Due to the absence of consistent buying interest following the launch of the ETF, Ethereum is now vulnerable to selling pressure, which has caused a notable decline. The price of Ethereum has dropped by 12% in the last few days, a move that some analysts had predicted because of the lack of immediate market demand after the spot ETF approvals.
This scenario is similar to how Bitcoin behaved following the introduction of its spot ETFs, when it declined by 21% before leveling off. There are a number of reasons for the negative attitude that surrounds Ethereum. First, as institutional investors took advantage of the opportunity to sell their holdings, the initial enthusiasm surrounding the ETF launch quickly decreased, increasing selling pressure.
Furthermore, investor sentiment has been negatively impacted by the recent $1.1 trillion loss on the stock market, which has further strained wider markets. In the coming days, the $2,900-$3,000 range will be important for Ethereum.
Solana has potential
Solana (SOL) is still on the rise and has room to rise even more, even though it was unable to overcome the resistance level at $185. The asset's recent price changes indicate the emergence of a descending wedge pattern, which frequently comes before an increase in volatility.
Solana may still hit $200 if the cryptocurrency market's general attitude stays positive. Solana's current trading price of $177 indicates a slight reversal of its upward momentum, but it is still rising.
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Significant support levels are being offered by the 50, 100 and 200 EMA, all of which Solana has sustained above. This is encouraging because it shows that the underlying trend is still in place.
The RSI indicator is at 64, indicating that there is still a lot of buying interest, even though the asset is not in the overbought area. Usually when an asset reaches this level of RSI, there is still room for it to rise before strong selling pressure occurs.
However, a descending wedge formation might occur quite soon. Converging trend lines with a downward-sloping upper trend line and a relatively flat lower trend line are what define this pattern.
Given the state of the market, Solana may see a significant increase if it can maintain above its important support levels and break from the falling wedge.
XRP's struggle
XRP has been unable to overcome the $0.61 resistance level for a while. The asset is currently engaged in a battle for a reversal, having repeatedly failed to break through the $0.65 barrier during recent tests despite displaying strength in prior rallies.
The asset's value may fall more than anticipated during this market cycle if bears gain the upper hand, according to the current technical setup. While XRP has suffered a small loss, it is still trading within a critical range at approximately $0.6. Traders are becoming increasingly concerned about the asset's lack of upward momentum, even though these moving averages have helped it hold its position.
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With the RSI indicator at 65, the asset is getting close to the overbought area. At this point the asset may be under selling pressure if it does not break the resistance level quickly, even though there is buying interest. Increased activity is also evident in the volume profile, which illustrates a tug-of-war between buyers and sellers.
If XRP breaks above the $0.61 resistance and targets the $0.65 level, it will be able to sustain its bullish outlook. Bears might seize control if this is not done, and the price might then drop toward the 50 EMA at $0.54 or even the 100 EMA at $0.53.
