Altcoin performance is a subject of close scrutiny, particularly given the volatility witnessed in June. Bitcoin (BTC), the largest cryptocurrency, is currently 25% away from reaching a new all-time high (ATH), while altcoins are still about 100% away from their previous ATHs. This significant disparity raises questions about whether altcoins can reclaim their previous highs in the near future. Now, let’s delve into the price analysis of Ethereum (ETH), the largest altcoin, and Solana (SOL), one of the prominent altcoins.
Ethereum Analysis:
According to Crypto World analyst Josh, Ethereum’s price is currently encountering resistance at a Fibonacci level around $3,480, which previously served as a support level. Recently, Ethereum rebounded from the 50% retracement level to approximately $3,350, which now acts as a support level. Additional support can be found in the range of $3,180 to $3,220. For the latest technology news, you can visit NEWSLINKER.
In the short term, Ethereum’s trend and momentum continue to exhibit a downward trajectory similar to Bitcoin. However, a downward trend does not necessarily imply a continuous decline. Temporary bounces and periods of horizontal consolidation may occur. This formation is expected to persist over the next few days. On the 12-hour chart, there is an active bullish divergence, indicated by lower lows in price and RSI matching higher lows in RSI. Such divergences typically lead to short-term relief or horizontal movements, but they require further confirmation, such as breakouts above key resistance levels, to confirm an uptrend.
Currently, Ethereum faces resistance around $3,450, which previously acted as a supportive level. Additionally, there is resistance between $3,600 and $3,650, known as the golden pocket resistance. Support can be found around $3,300. On the 8-hour chart, there is a slight relief in the short-term downtrend, with the RSI falling into the oversold region, a common indicator of local lows before minor bounces or horizontal movements.
When examining the ETH/BTC weekly chart, it becomes evident that Ethereum has underperformed compared to Bitcoin in recent years, despite experiencing short-term bounces. A breakout above the descending resistance line at 0.056 BTC per ETH, confirmed by a weekly candle close above this line and ideally surpassing a previous high, could indicate the end of Ethereum’s downtrend relative to Bitcoin.
Solana Analysis:
Turning our attention to another prominent altcoin, Solana (SOL), technical data reveals a new breakout above the resistance level at $140-144, which is currently undergoing a retest. If Solana manages to hold above $140, it could establish a new support level and potentially pave the way for a rise towards $160. However, if it fails to sustain above $140, a decline to the $120-128 range could be expected.
Overall, while the altcoin market is still far from its previous ATHs, closely monitoring the performance of major altcoins like ETH and SOL in the upcoming weeks will be crucial. Their ability to surpass resistance levels and establish new supports will determine whether the current downward trends will transition into upward trends.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is advisable to conduct thorough research before making any investment decisions.
