SOL has dropped from 185 all the way down to 177, and then quickly rebounded to around 179. This drop was significant, but the rebound speed indicates that buying support at lower levels is not weak.
Key levels:
Support below: 176-177 range, if this level is broken, it is likely to test 173-174.
Resistance above: 181-183 range, this is the area where bulls were concentrated previously and is also key for a short-term breakout.
Likely rhythm:
The possibility of sideways consolidation is greater. The sharp drop from 185 to 177 has already released some bearish momentum, and the area around 179 is a battleground for bulls and bears, requiring time for short-term oscillation to digest.
If 177 holds, the market is likely to consolidate repeatedly in the 177-183 range before deciding on a direction.
If it breaks below 176, the pullback space will open up again, and one needs to be cautious of 173 below.
Conservative approach: Wait for confirmation. If 177 holds, gradually build up long positions with light leverage, aiming first for 181-183, with a stop loss set below 176.
Aggressive approach: A short-term long can be attempted around 179-180, with a stop loss set (below 176), aiming for a quick rebound.
Bearish strategy: If it rebounds to the 183-185 range without breaking through, one can short, targeting 178-177.
Summary in one sentence:
ETH is currently in a stage of oscillation and consolidation, with the key being whether 177 holds. If it holds, it indicates a base formation; if it breaks, it suggests a second bottoming out. In terms of operations, be sure to use light positions, enter and exit quickly, and don’t get shaken out by the oscillations.
