Ethereum (ETH) Paints Grim Reversal Pattern, Solana (SOL) Whales Not Bullish, Bitcoin (BTC) Aims for $60,000
U.Today - Warning signs are flashing for a potential local price reversal as a troubling candlestick pattern emerges. This reversal pattern, observed during the recent local uptrend peak, suggests a possible decline on the horizon.
The sharp decline in purchasing power typically leads to the appearance of the candlestick structure, indicating that Ethereum's bullish momentum may be waning. The chart reveals that Ethereum recently struggled to break through key resistance levels, particularly around the $2,500 mark, before succumbing to selling pressure.
As a result, a traditional reversal pattern has formed, often signaling the beginning of a price decrease. Traders are warned of the potential for increased selling pressure on the asset in the coming days, especially if overall market conditions do not improve. The noticeable drop in trading volume is another factor heightening the likelihood of a reversal. The lack of buying volume to support Ethereum's price increase suggests a decrease in buyer enthusiasm.
Ethereum appears vulnerable to a retracement due to the diminishing support from buyers at current price levels. Moreover, the market sentiment remains uncertain, with many traders adopting a cautious approach due to macroeconomic concerns and potential shifts in investor sentiment.
Whales Not Ready
Recent on-chain data indicates that Solana whales, often considered a significant force behind price momentum, seem to be losing their bullish stance. Based on market behavior, Solana whales lack confidence in the long-term as they quickly sell their holdings when prices reach local highs.
According to the latest data, a whale has withdrawn 206,951 SOL, approximately $29.3 million, at an average price of $142 from the MEXC and Binance exchanges since Feb. 7. Despite 115,135 SOL being staked, the remaining amount appears to have been sold or is missing.
This selling activity suggests that even major holders are not betting on long-term gains in Solana prices. The price chart reflects the inability of SOL to maintain significant upward momentum. Trading at $133, SOL remains below key moving averages following a brief uptick. Resistance from the 50-day and 100-day EMAs, as well as the 200-day EMA at $149, presents a substantial barrier.
The likelihood of a bullish breakout is further diminished by the ongoing rejection from these levels. Additionally, SOL is approaching the bearish zone but remains in neutral territory according to the Relative Strength Index (RSI), hovering around 46.
Aims for $60,000
Bitcoin is retracing its previous gains and positioning itself to target the crucial $60,000 mark. While this prospect excites bullish traders, several factors are influencing the dynamics of the Bitcoin market, warranting caution for those considering a move.
Market conditions became extreme over the weekend as the Bitcoin Risk Index hit 100. With a slight retracement underway, this level suggests that Bitcoin may be experiencing a temporary overheating phase, potentially leading to a distinct bottom and a strong upward move if the retracement continues.
Currently trading at $56,960, Bitcoin faces resistance from the 200-day EMA and a supporting trendline. Reaching the $60,000 mark is achievable, but overcoming these obstacles may take time.
In conclusion, Ethereum is showing signs of a potential price reversal, Solana whales are not optimistic, and Bitcoin is eyeing the $60,000 mark with various challenges ahead. Traders should exercise caution and stay informed about market developments to make informed decisions about their investments.