Josh, an analyst at Crypto World, recently observed that Ethereum (ETH) has rebounded slightly but has not yet confirmed a complete reversal of the downward trend. He pointed out that Ethereum is still making lower highs and lower lows and faces resistance from the downtrend line. To surpass Bitcoin, Ethereum needs to break through this resistance line and form higher highs. Josh also analyzed Solana's price action, pointing out its bullish signs.
Ethereum Price Analysis:
Discussing Ethereum’s recent daily trend, Josh mentioned that despite the sharp drop in price, support was found around $3,350, which is exactly the 50% retracement level. However, resistance around $3,650 remains strong.
Currently, Ethereum appears to have entered a sideways phase within a larger downtrend. This sideways movement is common in a downtrend. On the 12-hour chart, Ethereum is showing a bullish divergence signal, where the price is making lower lows, but the RSI indicator is showing higher lows. This suggests that there may be a short-term upside or more sideways trading.
Ethereum is forming a pattern that could lead to a bullish breakout or continue sideways trading. The bullish divergence suggests that if Ethereum breaks above the $3,590 resistance level, the price could rise further. However, it would need to break above the strong resistance zone of $3,600 to $3,650 to confirm a more bullish trend.
Solana Price Analysis:
Josh said Solana recently showed a new bullish divergence on the 8-hour timeframe. However, Solana is currently facing strong resistance in the $140-$144 range, which was previously support and now acts as resistance.
The bullish divergence suggests that Solana could trade sideways in the short term (perhaps in the next few days). This consolidation occurs within a broader short-term bearish trend. The key support is between $120 and $128, which has bounced off it recently.
Even if Solana breaks above the upper limit of the current resistance zone at $144, it still faces significant resistance around $160. To see further bullish gains in the short term, Solana needs to break above the $160 level. Overall, Solana’s short-term trend remains bearish, but a temporary reprieve or sideways movement may be in the cards as a bullish divergence is observed.
Summarize
Both Ethereum and Solana face different technical patterns and market sentiments. Ethereum needs to break through key resistance to confirm a bullish trend, while Solana is trading sideways in front of key resistance, waiting for further breakthroughs. For investors, keeping a close eye on the price movements and technical signals of these two cryptocurrencies will help make more informed investment decisions.
