Ethereum Price Repeats Bear Setup; Solana’s structure changes
Ethereum, the second largest by market cap, is stuck in a sideways movement similar to Bitcoin. There is no confirmed bullish trend reversal and according to Josh of Crypto World, this may just be a short pause in the ongoing bullish trend as seen in previous patterns.
The price of Ethereum is moving sideways on a daily time frame and Josh fluctuates between the 50% retracement level, which acts as support at $3,350, and the previous Fibonacci level at about $3,480, which serves as resistance.
The analyst said there was an active bullish divergence, providing some relief from the short-term bearish trend. However, the price of Ethereum continues to struggle with the critical resistance level around $3,450.
Recently, he faced another rejection at this level, mirroring his previous rejections. Although Ethereum closed above $3,450 and above $3,480 with a confirmed candle, it still faces strong resistance between $3,600 and $3,650. This situation is similar to the past when 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 such as $3,650 are needed, which have yet to occur. When a bullish divergence is in play, the trend is weak, leading to sideways price action in the short term.
What about Solana?
A few days ago, Solana confirmed an opening above the critical resistance area between $140 and $144. After testing and capturing this area as a new support, Solana created a reverse head and shoulders pattern.
To confirm this pattern, Solana needs to break above the neckline of the $151-$152 candle close. If confirmed, this pattern would set an upper price target near $180, representing the 18-19% retracement point.
However, there are resistance levels between the current price and the target. These include resistance between $160, $170-$175 and $183-$187. Even so, Solana's price structure is turning strong, turning previous resistance into new support.
