When purchasing power sharply declines, the candlestick structure typically appears, suggesting that Ethereum’s bullish momentum may be losing steam. The graph shows that before giving in to selling pressure, Ethereum recently struggled to break through significant resistance levels, especially around the $2,500 mark.
As a result, a traditional reversal pattern developed, which frequently signals the start of a price decrease. This technical signal alerts traders to the possibility that selling pressure on the asset may increase in the upcoming days, particularly if overall market conditions do not improve. The discernible decline in trading volume is another element raising the possibility of a reversal. The buying volume lagged behind Ethereum’s price attempt to rise, suggesting that buyer enthusiasm has diminished.
Ethereum looks susceptible to a retracement as fewer buyers seem to be supporting current price levels. Furthermore, the general attitude of the market is still hazy, with a lot of traders taking a cautious stance because of macroeconomic issues and possible changes in investor sentiment.
According to the most current data, a whale has taken out 206,951 SOL, or roughly $29. 3 million, at an average price of $142 from the MEXC and Binance exchanges since Feb. 7. The more intriguing part is that despite 115,135 SOL having been staked, the remaining amount seems to have either been sold or is missing.
This selling activity implies that not even significant holders are inclined to wager on long-term gains in Solana prices. The fact that SOL is unable to sustain any significant upward momentum is supported by the price chart. Currently trading at $133, it is still significantly below its important moving averages following a brief upswing. Resistance has been provided by the 50-day and 100-day EMAs, and the 200-day EMA at $149 has proven to be an even bigger obstacle.
The likelihood of a bullish breakout is further diminished by the ongoing rejection from these levels. Furthermore, SOL is nearing the bearish zone but remains in neutral territory, according to the Relative Strength Index (RSI), which is currently hovering around 46.
The extreme conditions on the market were indicated over the weekend when the Bitcoin Risk Index reached 100. With a slight retraction currently taking place, this level suggests that Bitcoin may be going through a brief phase of overheating. It might, however, result in a distinct bottom and pave the way for a powerful upward move if the retraction continues.
According to the chart, Bitcoin is currently trading at $56,960 after a brief rally that has not yet fully recovered key resistance levels. Bitcoin’s price is encountering resistance from the 200-day EMA and the trendline that is performing as support. These elements imply that although reaching the $60,000 mark is feasible, it might take some time to overcome these obstacles.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
