As a seasoned crypto investor, I’ve witnessed my fair share of market fluctuations and have learned to read the signs in price charts. Based on the current trend, Ethereum (ETH) looks poised for potential gains. The fact that ETH is trading below its short-term and long-term moving averages but has a rising RSI and CMF indicates that bullish momentum is building. Furthermore, the double bottom formation against Solana (SOL) and the potential resistance breakthrough at $3,300 add to my optimistic outlook for ETH.
As an analyst, I observed that the Ethereum price dipped by 0.6% in the past 24 hours and hovered around $3,084 during European trading hours on a Friday. In contrast, Solana experienced a more pronounced decrease of 3.9%, causing its price to settle at $135.54. On the preceding Thursday night leading into Friday morning, Ethereum managed to register a significant gain of 4.52% against Solana before experiencing a slight pullback.
Ethereum Price Eyes 7% More Gains Amid Fearful Markets
The Ethereum price has been moving below its 21-day, 50-day, and 200-day moving averages, suggesting a bearish trend. However, the relative strength index (RSI) currently stands at 39 and is increasing, implying that buying pressure is growing for Ethereum. This bullish signal is further reinforced by the chaikin money flow (CMF), which is at -0.05 but is moving upward, signaling that the inflow of capital into Ethereum may soon lead to price gains.
The Ethereum price trend indicates a bullish outlook as the price bounced back within the downward channel. A significant resistance lies near the $3,300 mark; surmounting this level could propel Ethereum’s price up to $3,950.
The price of Ethereum has created a double bottom formation compared to Solana, meaning it’s formed two consecutive lows. A potential gain of 5.16% remains before this pattern is fully established in the market.
SOL Competes with Ethereum Price Amidst ETF Rumors
In contrast to Solana’s price action in the 4-hour chart, where it forms an ascending triangle pattern and rests at the lower trendline, the asset exhibits bearish signs as it trades beneath the 21-day, 50-day, and 200-day moving averages. The 200-day moving average serves as a resistance level around $143, aligning with the horizontal resistance line of the triangle.
As a crypto investor, I’m closely monitoring the price action of Solana (SOL). If the current ascending triangle pattern is broken above, we could potentially see SOL soaring by approximately 18%, reaching a new high of around $172. Conversely, if bears manage to regain control, the support level around $121 may be tested. The Relative Strength Index (RSI) for SOL is currently at 41.61 and is trending downwards, suggesting that bearish momentum is gradually increasing.
Despite the current critical juncture for the asset’s value against Ethereum, a rebound could potentially yield a 15.74% profit increase.
Nate Geraci, president of ETF Store, mentioned Roxanna Islam’s anticipation that additional Solana ETF proposals could be submitted if the Ethereum ETF receives approval. The filings made by Cboe for VanEck and 21Shares provide evidence of the industry’s preparedness in this regard.
As a crypto investor, I’m optimistic that more companies will follow in the footsteps of those seeking to launch spot Ethereum Exchange-Traded Funds (ETFs) and file applications for Solana ETFs once the Ethereum ones have been finalized.
Agree. My $$$ is on Bitwise first.
— Nate Geraci (@NateGeraci) July 12, 2024
Bottom Line
Based on current market trends, Ethereum’s price movement indicates a possible rise towards $3,950 once it surmounts the resistance level of $3,300. On the other hand, Solana is moving within an uptrending triangle formation but is exhibiting growing bearish signals as evidenced by its RSI heading southward. If Solana manages to breach above the pattern, there’s potential for a significant price increase up to $172. However, if bearish tendencies persist, the price may find solace around $121.
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2024-07-12 09:56