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The cryptocurrency market currently presents a mixed outlook, with Bitcoin trading below the $70,000 mark. Most leading altcoins, including Ethereum, have experienced declines and are in the red zone. Analyst Josh from Crypto World has provided details into what lies ahead for Ethereum, focusing on analysis and technical factors.
The analyst said that Ethereum on the daily timeframe is still lacking bullish momentum in the short term. However, the bullish breakout for the falling wedge pattern remains technically intact. To completely invalidate this breakout and its associated price target, the price would need to drop back below the breakout point, which is approximately at $3,200. Despite this, in the shorter term, the price seems to be struggling for momentum.
On the 8-hour timeframe, Ethereum is encountering a crucial support zone once again, marked by previous support and resistance levels and reinforced by Fibonacci levels, particularly the golden pocket ranging between $3,600 to $3,650. This remains an important support level for now.
Should the price confirm a break with candle closes below $3,600, the next support level to watch would be around $3,450, followed by a more substantial support zone around $3,300. If the price bounces off the golden pocket, resistance levels at $3,820, $3,870, and $3,950 would be the ones to monitor.
Looking at Ethereum against Bitcoin on the weekly timeframe, the trend remains more bearish than bullish, characterized by lower highs and lower lows. Recent weeks have seen another rejection from resistance, indicating underperformance of Ethereum compared to Bitcoin.
What’s in store for Solana?
Josh further discussed Solana’s technical analysis. Over the past day, Solana has shown mostly choppy sideways price action. This movement stems from a recent break below the critical level of $160. However, despite this bearish signal, there was a lack of follow-through to the downside, indicating a scarcity of bearish momentum.
He said that there hasn’t been a notable surge in bullish momentum either. Hence, the overall market sentiment for Solana currently suggests a lack of momentum, pointing towards a sideways consolidation or choppy price action in the short term.