The market is ready for a more exciting performance, but investors should remain cautious, as various altcoins may collapse.
Ethereum's current trading price has surpassed $4,800 for the first time since the peak of the 2021 bull market, setting a nearly four-year high. This trend indicates that the second-largest cryptocurrency by market capitalization, Ethereum, is strengthening again and is approaching just below the historic high of $5,000.
From a technical perspective, Ethereum has been leading the market in recent months. Ethereum has surged significantly, breaking through multiple resistance levels and far surpassing its major moving averages, while Bitcoin has been steadily rising in a more robust manner. Although the daily RSI indicator is deeply entrenched in the overbought zone, showing strong buying pressure, traders have shown no signs of slowing down.
Unlike previous highs, this rebound is occurring in a drastically different market environment, which is worth noting. The 2017 cycle was driven by the ICO frenzy, while the surge in Ethereum in 2021 was propelled by the explosive growth of NFTs. This time, the market is no longer dominated by speculative bubbles but is more suppressed by underlying market drivers. Instead, the expansion of DeFi protocols, broader adoption of the ETH blockchain, and the ongoing implementation of Layer 2 are playing significant roles.
This quarter, Ethereum's performance has absolutely outpaced Bitcoin and most altcoins, making it the strongest performing major asset in the cryptocurrency space.
Market sentiment can change within hours, and excessive momentum often leads to unexpected pullbacks for most. However, for Ethereum bulls, considering that Ethereum has performed flat over the past three years, the first breakthrough of the $4,800 range since 2021 is worth celebrating.
Solana is making another push.
Solana decisively broke through the $200 mark, achieving significant progress. The current trading price of SOL is close to $209, attempting to break through the key resistance level of $205, which has historically been an important barrier. This suggests that bullish momentum is strengthening, and the price is able to maintain above this level.
The steady growth in trading activity indicates that more and more market participants are getting involved rather than diminishing its impact. This trend in rising volume typically suggests that real buying interest, rather than speculative activity, is driving price movements.
The next important resistance level is at $238, which has historically led to significant declines in Solana's price. As a clear breakout of this resistance level could pave the way for greater volatility, this area will become a key battleground for bulls and bears. If the upper limit of $238 is broken with significant volume, a move towards $300 is technically possible.
Although Solana's future may be volatile, its current momentum and technical structure suggest that there is a possibility of an upward trend in the medium term. If Solana fails to hold above $205, its support level could fall back to around $178, or even the high of $160. However, bulls remain dominant, as Solana's breakout, supported by recent volume growth and strong market interest, makes $300 a realistic target for the future.
Bitcoin is on the move.
A significant surge in trading volume has propelled Bitcoin to achieve a major technical breakthrough, breaking the $121,000 barrier, indicating that this move may have real staying power. In recent weeks, $117,000-$118,000 has become an important resistance area, with BTC consolidating below this level before the breakout. With the resistance level broken, the market now has a genuine opportunity to continue rising. Volume has also increased alongside the upward trend.
From a technical standpoint, price movements are confirmed by volume—without volume, breakouts often fail. The increased trading activity has strengthened the bullish outlook, indicating that both institutional and retail traders are returning to the market. The positioning of the Relative Strength Index (RSI) is one of the more positive indicators for bullish sentiment.
Despite the significant rise in Bitcoin's RSI, it still remains below the overbought zone, indicating that there is still potential for price increases before momentum faces overheating risks. This makes Bitcoin's risk-reward ratio appear clearer, contrasting sharply with the recent aggressive movements of altcoins, including Ethereum. The key is whether Bitcoin can continue to hold above the breakthrough resistance level.
If Bitcoin (BTC) can hold above the support level of $121,000 and attract volume, it may be ready to challenge the next important resistance level in the range of $125,000 to $128,000. Although the market remains volatile and macroeconomic variables could still bring surprises, Bitcoin's recent surge provides a golden opportunity for it to regain a stronger bullish structure.
Volume confirmation, strong RSI positioning, and the elimination of stubborn resistance zones have all contributed to this breakout, making it one of Bitcoin's most promising technical setups in months.
