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Bitcoin (BTC) Couldn’t Hold Itself, Solana (SOL) Lands on Crucial Support, Ethereum (ETH) to Reach $4,500

Tue, 28/05/2024 – 0:30

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Contents

  • Bitcoin’s path to $70,000
  • Solana hits support

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Ethereum is clearly amping up for a potential surge toward a new yearly high as the price of the second-biggest cryptocurrency approaches $4,000. Previously, some analysts stated that ETH is going to reach $4,500 before ETF trading goes live.

Ethereum has also continued to rise above the $3,800 level, now trading at around $3,906. This bullish run is rather supported by a considerably high amount of volume, indicating good buying interest. Currently, the level has found strong support from the 50-Day EMA, lying around $3,225, and from the 100-Day EMA around $3,170, supporting ETH.

ETHUSD
Ethereum/USD Chart by TradingView

At the moment, the Ethereum RSI is at 72, indicating that ETH is overbought. Maybe it signals a pullback, but the general sentiment of the market remains in place. Recent price action noted a clear breakout from consolidation, with more targets on higher resistance levels for ETH.

But it has to hold momentum to continue the journey toward $4,500 and penetrate above the psychological $4,000 price level. If at all broken, the next crucial resistance we are looking at in the range of $4,200 could give power to the doors for ETH toward $4,500. The current levels to watch are $3,800 and $3,500 on the downside, which should hold to maintain the bullish bias.

Bitcoin’s path to $70,000

Bitcoin has failed to hold itself above or even close to the crucial price level of $70,000 and is currently consolidating around $69,000. Unfortunately, this is a signal of decreasing power and might hint at some bearishness ahead.

This implies that the digital asset is failing to sustain levels above $70,000, a level that signals the continuation of massive buying pressure. From looking at recent price action, Bitcoin has once again failed to sustain above the $70,000 level, where most significant resistance lies. 

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The consolidation can be visibly seen on the daily chart, where Bitcoin is exchanging levels just under $69,000. Besides that, the struggle to maintain gains above the psychological level continues to pick up momentum while consolidating at that level, with the 50-day moving average.

Failure to breach the resistance at $70,000, along with consolidating price action, may also signal potential bearish trends. If Bitcoin loses the battle to hold above levels beyond the immediate support at $68,000, it might test the lower support levels around $65,000 and $62,000, as depicted by the moving averages. The selling pressure surge under these moving averages is likely to push for larger losses toward the $60,000 level.

Solana hits support

Solana is approaching a strong support level in the form of the 26 EMA. It is not the first time the price of SOL is going to test this resistance level as, in the past, SOL has hit it around $160 and successfully emerged upwards.

Solana is testing such a strong support level in the form of the 26 EMA. It would not be the first time the price of SOL has touched this resistance level. This has been the case in the past, whereby SOL touched around $160 in price and sprang upward successfully. Solana is currently trading around $164, which is close to a major support zone expanded by the 26-day EMA.

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This has acted strongly in the past, notably around the $160 zone, from which SOL managed to find strength and rise. One of the very important technical indicators monitored very closely by traders, therefore, is the 26 EMA, as it usually provides a cushion during a bullish run and resistance when in a downtrend.

Solana has been quite volatile pricewise but has remained upwards over the last few trading weeks. Further, the price has retracted at the levels around $190, testing the 26 EMA support. Not far away, the 50-day EMA is located at $153, and in the case of a failure of the 26 EMA, that is the next line of defense.

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