The performance of altcoins, particularly Ethereum (ETH) and Solana (SOL), is under close scrutiny due to the volatility experienced in June. Bitcoin (BTC), the largest cryptocurrency, is currently 25% away from its all-time high (ATH), while altcoins lag nearly 100% behind their previous peaks. This significant discrepancy raises questions about the potential for altcoins to return to their former highs soon. Here, we delve into the price analysis for Ethereum and Solana.
What Does Ethereum’s Data Indicate?
Josh, a Crypto World analyst, notes that Ethereum is encountering resistance at a Fibonacci level of approximately $3,480, a prior support. Ethereum recently rebounded from the 50% retracement level, around $3,350, which now acts as support. Additional support zones lie between $3,180 and $3,220. In the short term, Ethereum’s momentum mirrors Bitcoin’s downward trend, although this does not imply a continual decline. Temporary recoveries and lateral consolidations are feasible in the coming days. A bullish divergence on the 12-hour chart suggests possible short-term relief, yet confirmation through breakouts above key resistance is needed to establish an uptrend.
Is Solana Poised for a Breakout?
Solana’s SOL shows a recent breakout above the $140-144 resistance level, now being retested. If Solana maintains its position above $140, it could set a new support level, potentially pushing the price towards $160. However, a failure to stay above $140 might lead to a decline to the $120-128 range. Overall, the altcoin market remains distant from previous highs, making it essential to monitor ETH and SOL’s performance in the upcoming weeks. Their ability to breach resistance levels and establish new supports will be crucial in determining the shift from downward to upward trends.
Key Insights for Investors
- Ethereum faces resistance around $3,450 and $3,600-$3,650, with support near $3,300.
- A bullish divergence on Ethereum’s 12-hour chart suggests potential short-term relief.
- Solana’s ability to hold above $140 could lead to a rise towards $160.
- Both ETH and SOL must overcome key resistance levels to shift from downward to upward trends.
- Monitoring ETH/BTC weekly chart for a breakout above 0.056 BTC per ETH can indicate trend reversal.
These insights highlight critical areas to watch for investors as they assess the potential for major altcoins to recover and establish new trends in the volatile cryptocurrency market.