Ethereum
Ethereum (ETH) Crashes Dramatically, What’s Next? Solana (SOL) Can Still Hit $200, XRP Struggling Ahead of $0.63 Test
Arman Shirinyan
Market hit by significant liquidations, creating additional pressure
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Although the market was somewhat shocked, Ethereum’s drop to $3,100 was not entirely unexpected. At first, there was hope after the launch of Ethereum Spot ETF, but price developments since then have been mostly negative.
Due to the lack of consistent buying interest following the ETF launch, Ethereum is now vulnerable to selling pressure, which has caused a notable decline. Ethereum price has dropped by 12% in the past few days, a development that some analysts had predicted due to the lack of immediate market demand following the approval of the spot ETF.
This scenario is similar to that of Bitcoin after the launch of its spot ETF, when it fell by 21% before stabilizing. There are several reasons for the negative attitude surrounding Ethereum. First, as institutional investors took the opportunity to sell their holdings, the initial enthusiasm surrounding the ETF launch quickly faded, increasing selling pressure.
In addition, investor sentiment has been negatively impacted by the recent $1.1 trillion loss in the stock market, which has further strained the markets. In the coming days, the $2,900 to $3,000 range will be important for Ethereum.
Solana has potential
Solana (SOL) is still rising and still has room to move higher, although it failed to overcome the resistance level at $185. The asset’s recent price movements indicate the emergence of a falling wedge pattern, which often precedes an increase in volatility.
Solana could still reach $200 if the overall cryptocurrency market sentiment remains positive. Solana’s current price of $177 indicates a slight reversal in its upward momentum, but it is still rising.
Important support levels are offered by the 50, 100 and 200 EMAs, which Solana has held above. This is encouraging as it shows that the underlying trend is still in place.
The RSI indicator is at 64, which indicates that there is still strong buying interest, even though the asset is not in the overbought zone. Typically, when an asset reaches this RSI level, it still has room to move higher before strong selling pressure occurs.
However, a descending wedge formation could occur quite quickly. Converging trendlines with a downward sloping upper trendline and a relatively flat lower trendline define this pattern.
Given the state of the market, Solana could see a significant upside if it manages to hold above its important support levels and break out of the descending wedge.
The XRP Struggle
XRP Bitcoin price has failed to break through the $0.61 resistance level for some time. The asset is currently engaged in a battle for a reversal, having repeatedly failed to break through the $0.65 barrier in recent tests despite strong resistance during previous rallies.
The asset’s value could fall more than expected during this market cycle if the bears take over, according to the current technical setup. XRP The stock price suffered a slight loss, but it is still trading in a critical range at around $0.6. Traders are increasingly concerned about the asset’s lack of bullish momentum, although these moving averages have helped it maintain its position.
With the RSI indicator at 65, the asset is approaching the overbought zone. At this point, the asset may be under selling pressure if it does not break through the resistance level soon, even though there is buying interest. Increased activity is also evident in the volume profile, which illustrates a tug-of-war between buyers and sellers.
If XRP If the price breaks above the $0.61 resistance and targets the $0.65 level, it will be able to maintain its bullish outlook. The bears could take control if this is not done, and the price could then drop towards the 50 EMA at $0.54 or even the 100 EMA at $0.53.
About the Author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.