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Contents
- Ethereum on the verge of collapse?
- Bitcoin remains relevant
As Solana looks to reverse its recent downtrend, it recently bounced off its 200-day EMA, indicating potential strength. This development follows SOL finding support at this key moving average, which has historically served as a reliable floor for the asset’s price.
The $150 level appears to be the next key level to watch given the current technical setup. The bounce comes with a noticeable downward trend in volume, indicating a possible easing of selling pressure and opening the door for a longer-term upside move.
Still, the chart’s EMA convergence is notable. A period of increased volatility is often preceded by a tight convergence of moving averages, especially the shorter-term ones. This convergence suggests that a breakout could occur in either direction while the market is still in a consolidation phase. In the long term, the $150 threshold is crucial.
It is a psychological barrier and has a strong correlation with recent price spikes where bulls have faced resistance. If Solana is able to break and sustain above this level, it could signal the start of a new bullish phase and increase buyer interest. If prices fall, the 200-day EMA remains a crucial support level. A drop below this moving average could trigger a retest of lower levels and potentially weed out weaker hands should Solana fail to sustain its current momentum.
Ethereum on the verge of collapse?
The possible formation of a death cross for Ethereum suggests that the market is close to a turning point. When a short-term moving average – usually the 50-day EMA – crosses below a longer-term moving average such as the 200-day EMA, it is known as a death cross.
This pattern is often interpreted as a bearish sign that the asset could face more downward pressure. Ethereum’s price action has been erratic, according to the official chart, and momentum has been slowing down over the past few weeks. The 50-day EMA could confirm the death cross and indicate a continued bearish trend for ETH if it breaks below the 200-day EMA.
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The EMAs are gradually converging. What is particularly worrying about Ethereum is the lack of momentum. ETH has struggled to maintain its uptrend after a strong rally earlier in the year, and recent price action has reflected market weakness and uncertainty.
It is possible that the bulls do not have enough strength to push the price higher as the trading volume has also been relatively low. The death cross could drastically weaken ETH’s value and force it to retest lower support levels should it occur.
Investors and traders may start to turn away from Ethereum, preferring safer or more promising investments. The death cross is a bearish signal, but it is important to remember that it does not always herald further losses. Ethereum’s next move will also depend on external factors, general sentiment, and market conditions.
Bitcoin remains relevant
Despite a seemingly slow performance, Bitcoin continues to hold its ground; it is currently going through a consolidation phase rather than a clear up or down trend.
Bitcoin has been trading in a tight range for the past few months, with little movement in either direction. However, traders need to be aware that this sideways movement has created two critical price levels. The $68,000 level, which represents the upper limit of the current consolidation range, is the first important level to keep an eye on.
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A break above this barrier would suggest a possible breakout and could initiate a new bullish phase for Bitcoin. This level has been tested multiple times, making it a crucial resistance point that could determine Bitcoin’s future price. On the other hand, the lower boundary of the range is at $52,900. To prevent BTC from falling into a more obvious downtrend, this level has served as a solid support.
A deeper correction in Bitcoin could be triggered if it fails to hold above this support, which could increase market pessimism. The fact that Bitcoin is currently trading closer to the middle of this range suggests that the market is still uncertain about where to go. A break in either direction could determine the trajectory of Bitcoin’s price action in the coming weeks, so traders should keep a close eye on these two levels.
