Ethereum Price Repeats Bearish Setup; Solana’s Structure Turns Bullish
Anjali Belgaumkar3 Jul 20242 min read
The second largest cryptocurrency by market cap, Ethereum, is stuck in a sideways movement similar to Bitcoin. There hasn’t been a confirmed bullish trend reversal and according to Josh of Crypto World, this could merely be a short-term pause in the ongoing bearish trend, as seen in previous patterns.
Ethereum’s price is moving sideways on the daily time frame and Josh said that it is fluctuating between the 50% retracement level, which is around $3,350 acting as support, and the previous Fibonacci level at approximately $3,480, which serves as resistance.
The analyst said that there is an active bullish divergence playing out, offering a slight relief from the short-term bearish trend. However, Ethereum’s price continues to struggle with the critical resistance level at around $3,450.
Recently, it faced another rejection at this level, mirroring a previous rejection. Even if Ethereum manages to break above $3,450 and $3,480 with confirmed candle closes, it will still encounter strong resistance between $3,600 and $3,650. This situation is similar to a previous period where a short-term bullish divergence did not lead to a trend reversal.
To confirm a bullish trend reversal, other signals such as breakouts above significant resistance levels, like $3,650, are needed, which have not yet happened. While the bullish divergence is playing out, the trend remains bearish, leading to choppy sideways price action in the immediate short term.
What About Solana?
A few days ago, Solana confirmed a breakout above the critical resistance area between $140 and $144. After retesting and holding this area as new support, Solana formed an inverse head and shoulders pattern.
To confirm this pattern, Solana needs to break above the neckline around $151-$152 with candle closes. If confirmed, this pattern sets a bullish price target close to $180, representing an 18-19% upside from the breakout point.
However, there are resistance levels between the current price and the target. These include resistance around $160, between $170-$175, and $183-$187. Despite this, Solana’s price structure is turning bullish, flipping previous resistance into new support.
Read Also: Will the BTC Price Hold $60,000? Here’s Why Bitcoin is Consolidating Below $62,500!
