With the market cap for crypto altcoins excluding Bitcoin falling to $909.91 billion, Ethereum and Solana are witnessing a major crash. The altcoin market is down nearly 7% over the past three days, with Ethereum and Solana approaching crucial support levels.
Will the growing bearish influence on the crypto market result in a major crash of the top altcoins like Ethereum and Solana? Let’s find out in the latest SOL and ETH price action analysis from Coinpedia. Discover the next reversal or downside risk.
Solana crashes below $170
In the daily chart, Solana price action shows that it has bullishly failed to maintain dominance above $180. This results in a three-day crash, good for a drop of almost 10%, with an evening star formation around $180.
Currently, it is testing a crucial support level near the $164 level as it trades at $165.69. However, the sudden increase in selling pressure has led to a bearish crossover in the MACD and signal lines.
If the bearish continuation of the Solana remains below the $164 support level, the 50-day and 200-day EMA are two dynamic average lines that could act as a reversal point. The dynamic average line is $156 and $145 respectively.
Wondering if Solana will reach $500 by 2024? Find out now in Coinpedia’s Solana price prediction.
Ethereum’s critical local support is at risk
After the recent falling wedge rally, the higher low formation in ETH continues. Despite the recent market crash, which was responsible for a 5.29% drop in ETH in one day, the uptrend is holding.
However, ETH price fails to surpass the USD 2,730 resistance level and breaks below the 50-day EMA. Currently, ETH price is struggling to find support from a local supportive trendline, and the 23.60% Fibonacci level is at $2,472.
The intraday candle shows a Doji formation while ETH is trading at $2,505. With the Doji candle, the chances of a Morning Star reversal to continue the bullish trend have increased to some extent.
However, the bearish crossover in the MACD and signal lines warns of a negative continuation. Using the Fibonacci retracement tools, the break of the $2,730 resistance crossing above the 200-day EMA is likely to challenge the 50% Fibonacci level near the $3,000 psychological barrier. However, a breakdown below the local support trendline will jeopardize the support at USD 2,225 and USD 2,160.
Credit : coinpedia.org
