Ethereum and Solana: What Comes Next? Understanding Consolidation and Key Levels
The recent price movements of Ethereum bear a resemblance to the patterns seen during the March 2020 market crash, according to observations by analyst Josh from the Crypto World. In both instances, there was an initial sharp decline, followed by a bottoming out, a rapid recovery, and then a subsequent pullback that established a higher low. This trend has persisted with Ethereum forming successive higher lows, punctuated by brief rebounds and periods of sideways consolidation.
Ethereum has consistently found robust support in the range of $2,000 to $2,150, as highlighted by Josh. This price region has remained a focal point of interest, with little alteration on the weekly timeframe, suggesting a sustained resilience at this level. However, the cryptocurrency encountered strong resistance near the $2,800 mark recently. This level has proven to be a formidable barrier, as emphasized by the analyst multiple times in the past week. Breaking through the $2,800 resistance is crucial for Ethereum, as it would pave the way for a potential challenge towards the next resistance level at around $3,200.
In terms of support levels, Ethereum has immediate backing around $2,500. If this level falters, a more robust support zone exists within the “golden pocket” range of approximately $2,150 to $2,200. This zone holds significant importance, representing a historically strong area of buying activity.
Shifting focus to Solana, the cryptocurrency is currently testing a critical support range between $140 and $144. A successful defense of this level could lead to a period of neutral price movement in the short term. Conversely, a definitive breach below $140, especially accompanied by a daily candle close below this threshold, would likely signal a descent towards the subsequent major support area in the range of $120 to $128.
Regarding resistance levels, Solana must navigate through several hurdles before it can challenge its broader resistance zone between $183 and $187. Initial resistance barriers lie around $159 to $162, followed by $170 to $175. These levels are pivotal for any bullish endeavors aiming to break out of the current trading range.
