The latest downturn in crypto has resulted in many investors heading for the exits. However, there are signs that in the top two layer one cryptocurrencies, outside of Bitcoin, a bottom could be forming. Ethereum (ETH) and Solana (SOL) are analysed.
$ETH has hit major horizontal support and the bounce is on
Source: TradingView
The weekly chart for $ETH (ETH/USDT) is certainly not all gloom and doom. The major support at $2,000 held very nicely, and the resulting long wick underneath the candle body bears testament to the heavy buying that pushed the price right back up again.
In addition, the Stochastic RSI at the bottom of the chart has the indicators nearly at the bottom. This means that a cross back up is only a week or two away. This could add a lot of fuel to this potential bounce.
An ugly ETH/BTC chart
Source: TradingView
While $ETH may be coming back against its dollar pair, the ETH/BTC pair is another thing. This chart does look rather ugly, and if the current major support fails it will look uglier still. $ETH bulls must turn up, and they must turn up in force in order to salvage what is a very precarious state of affairs.
The one hope is that the Stochastic RSI is nearly at the bottom. That said, if we look back at previous cross-ups in the Stochastic RSI, they did not succeed in pushing the price up far enough to break the downtrend. This time we could be in last chance saloon.
Rejection at major $200 resistance for $SOL
Source: TradingView
The $SOL price did recently get rejected from the major $200 resistance again, and this could be construed as a confirmation of this level as resistance. That said, the major horizontal support at $185 is not far below. As long as this holds, there will be room for the bulls to have another crack at that $200 resistance.
$SOL price reaching crucial decision point against $BTC pair
Source: TradingView
The SOL/BTC chart is much better to look at than the ETH/BTC counterpart. While $SOL was rejected at 0.00226 BTC, the major support at 0.0018 looks pretty solid, and this is also bolstered by the ascending bottom trendline of the triangle.
The Stochastic RSI at the bottom of the chart is showing that a bottom is near. Should the cross-up take place, and the indicators do not flatline for a long period, a breakout of the top of the triangle is more likely than a breakdown. There aren’t many cryptocurrencies that are out-performing BTC, therefore this chart must be watched closely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.