Ethereum is flashing warning signs of a potential local price reversal as a concerning candlestick pattern emerges. This reversal signal, observed at the peak of Ethereum’s recent uptrend, suggests a potential decline in the near future.
The candlestick structure typically appears when buying momentum weakens, indicating that Ethereum’s bullish drive may be losing strength. Recent price action shows Ethereum struggling to break key resistance levels, particularly near $2,500, before succumbing to selling pressure.
As a result, a classic reversal pattern has formed, often a precursor to price drops. This technical indicator signals traders that selling pressure could increase in the coming days, especially if broader market conditions fail to improve. Adding to the concern, trading volume has noticeably declined, with Ethereum’s price rise not matched by significant buying activity. This suggests waning enthusiasm from buyers.
With fewer participants backing current price levels, Ethereum seems vulnerable to a pullback. Market sentiment remains uncertain, as many traders take a cautious approach due to macroeconomic factors and potential shifts in investor confidence.
Solana Whales Losing Confidence
On-chain data shows that Solana whales, often key drivers of price momentum, are losing their bullish outlook. Market behavior suggests these large holders lack long-term confidence, quickly selling off their holdings when prices hit local highs.
The latest data reveals that a whale has withdrawn 206,951 SOL, valued at approximately $29.3 million, from MEXC and Binance since February 7 at an average price of $142. Despite 115,135 SOL being staked, the remaining amount seems to have been sold or disappeared from the market.
This selling activity indicates that even major holders are hesitant to bet on long-term gains for Solana. The price chart further supports this, as SOL currently trades at $133, struggling to maintain any upward momentum. Significant resistance has formed at the 50-day and 100-day exponential moving averages (EMAs), while the 200-day EMA at $149 presents an even more substantial barrier.
Continued rejection from these levels reduces the chances of a bullish breakout. The Relative Strength Index (RSI) is hovering around 46, suggesting that SOL is approaching bearish territory while remaining in neutral.
Bitcoin Targets $60,000 Amid Market Challenges
Meanwhile, Bitcoin appears poised to push toward the critical $60,000 level after retracing recent gains. Although this is an enticing prospect for bullish traders, several challenges lie ahead.
Over the weekend, Bitcoin’s Risk Index hit 100, signaling extreme market conditions and a potential phase of overheating. As a slight pullback unfolds, this could form a distinct bottom, setting the stage for a strong upward move if the correction persists.
Bitcoin is currently trading at $56,960 after a brief rally but remains below key resistance levels. The price faces resistance from the 200-day EMA and a trendline acting as support. These factors suggest that while the $60,000 target is within reach, it may take time to overcome these hurdles.
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