Ethereum, Solana Falling: Is This The Last Squeeze Before The Bull Run?

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As an experienced analyst, I’ve seen my fair share of market volatility in the cryptocurrency space. Last week’s bearish trend was a stark reminder that even the most resilient assets are not immune to the whims of the market. The Federal Reserve’s hawkish stance on inflation and interest rate cuts sent shockwaves through the crypto world, with Bitcoin and altcoins alike taking a hit.

Last week, the cryptocurrency market experienced a significant downturn as investors grew displeased with the Federal Reserve’s hawkish stance on inflation and planned interest rate cuts. As a result, Bitcoin dropped from around $70,000 to $65,000, while altcoins endured the most intense compression, with Ethereum and Solana leading the pack.

Despite suffering losses, what investors are primarily focused on now is the possibility of a market rebound and the factors that may trigger a strong rally during the second half of the year.

How To Navigate The Bearish Market For Maximum Gain

Investing in cryptocurrencies comes with a significant challenge: determining the right time to buy and sell. These pivotal moments distinguish successful investors from those who experience losses. Entering the market at its lowest point can result in substantial profits when prices rebound.

As a market analyst, I would advise that during market downturns in crypto, it’s crucial to seize opportunities and buy when prices are low. This strategy positions us to sell at higher prices once the market recovers, allowing us to profit from the price fluctuations.

Given the challenges of pinpointing exact peaks or valleys, investors should explore various aspects of the market when deciding on investment actions. These elements may include the broader economic context, the evolving crypto marketplace, individual projects, and technical indicators, among others.

Based on the present market scenario on CoinGecko, with a total market capitalization dwindling down to $2.43 trillion, there are potentially numerous buy-the-dip chances emerging.

As a crypto investor, I’ve noticed that Ethereum’s price has broken through the support level at $3,400. This could potentially lead to a further drop in price down to around $3,200. The same goes for Solana; its price has been under pressure from sellers, causing a 12.5% decrease over the last week and bringing it down to approximately $134.

Binance Coin, like other cryptocurrencies, experienced a price drop, trading around $577 after previously reaching over $700. XRP is currently holding steady at $0.5, but key support levels can be found at $0.48 and $0.52.

Dogecoin and Toncoin rank among the top ten cryptocurrencies, experiencing declines of 10% for Dogecoin and 9.5% for Toncoin respectively. Notable losses among larger alternative coins include Shiba Inu, Uniswap, NEAR, FET, and FIL, with each coin registering double-digit percentage decreases.

Ethereum Price Analysis As Last Line Of Defends Shakes

As a researcher studying the cryptocurrency market, I’ve observed that Ethereum hovered around the price mark of $3,390 on Tuesday. Previously, this level had functioned as a support for Ethereum, but now it appears to have transformed into resistance. Ethereum’s overall trend is following a descending channel, and should ETH drop, the channel’s support at approximately $3,350 could potentially provide a cushion.

Ethereum, Solana Falling: Is This The Last Squeeze Before The Bull Run?

The important resistance level to keep an eye on is located at $3,300, as indicated by the green line. It’s crucial for Ethereum bulls to defend this position; otherwise, there’s a risk of seeing a significant drop to $3,200 and potentially even reaching $3,000. This scenario could signal a bearish trend for Ethereum with strength.

To spark a surge in the ongoing downtrend for Ethereum (ETH), the cryptocurrency needs to finish the day with a closing price above the $3,400 mark. A rebound from this level could reignite investor enthusiasm and potentially pave the way towards recovery, reaching a price of $4,000 or higher.

Solana Price Balancing At The Cliff’s Edge

Solana is clinging tightly to its support at $135. This crucial support level is reinforced by the persistently upward trendline. If declines persist and push Solana’s price below this point, it may drop down to $130.

In May, Solana tested support at $120 before recovering to $188 in the same month.

Ethereum, Solana Falling: Is This The Last Squeeze Before The Bull Run?

According to RSI indications, there’s a growing likelihood of Solana’s recovery. However, it’s crucial that the price holds steady around the support level of $135 before any significant upward movement can occur. As the RSI approaches the midpoint at 50, Solana is expected to regain strength and push past the resistance levels of $140 and subsequently $150.

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2024-06-18 18:28