As Bitcoin (BTC) faces its own rejection from the top of its bull flag, Ethereum (ETH) has been strongly rejected from the $2,500 horizontal level. At the same time, Solana (SOL) is attempting to break out of a descending channel. Is $SOL about to take over the reigns from $ETH?
$ETH strong rejection from $2,500 horizontal resistance
Source: TradingView
The short-term chart for $ETH shows a rejection from the very important $2,500 horizontal resistance level. This follows another rejection a few days ago. It may be that $ETH will continue to tap on the glass until it breaks, but for the time being at least the price has come back to rest on the $2,450 support, with the possibility that it may come back down to $2,400.
$ETH still in consolidation mode
Source: TradingView
As can be seen from the daily chart, the current price action is following on from a break of a long-time descending trendline. Therefore, the sideways price movement is probably just a period of consolidation before the next leg higher.
$SOL breakout attempt
Source: TradingView
Meanwhile, $SOL bulls are attempting a difficult breakout right now. It’s difficult because not only do the bulls need to push the price beyond the long-time descending trendline, but also they need to force the price through the strong resistance band from $150 to $152. If the bulls are successful, this would be an extremely bullish breakout for $SOL.
That said, with a lot of the short-term Stochastic RSI indicators just rolling over from the top, upside price momentum is not on the side of the bulls. If the price does reject from here, support levels can be found at $148, $144, and $142.
NOTE: At time of going to press, the $SOL price has just surged up as high as $157. It will remain to be seen if this breakout can be maintained.
$SOL bullish break targets $158 resistance level
Source: TradingView
The weekly time frame for $SOL shows the current breakout beyond the upper trendline of the descending channel. The next resistance is just above at $158. If the bulls can continue this push and thrust the price though this resistance, $180 is the next target.
Even more bullish is the Stochastic RSI on the weekly time frame. This is currently signalling a crossover of the indicator lines, which if confirmed at the end of this week, could signal a bounce from the 50.00 level and a return to strong upward price momentum for $SOL going forward.
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.
