Ethereum, Solana: 2 High-Potential Bullish Breakouts to Watch in the Crypto Market
Investing.com | Feb 15, 2024 14:14
- Bitcoin's surge above $52,000 has contributed to the broader crypto market's renewed bullish momentum.
- Ethereum has recently gained bullish momentum, breaking out from a sideways phase and approaching a critical resistance level at $2,850.
- Meanwhile, Solana has re-entered the short-term peak zone, facing resistance at $125.
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This week, Bitcoin surged above $52,000 in spite of the hotter-than-expected CPI report, triggering a similar response in the altcoin market.
As a result, Ethereum gained some upward momentum, shadowing some of Bitcoin's gains. Simultaneously, Solana, which experienced a modest correction last month, re-entered the short-term peak zone this week.
This has led to some interesting technical opportunities in the crypto market. Here are two high-potential breakout setups traders should watch out for in the coming days:
h2 1. Ethereum's Bullish Momentum Gains Traction/h2Continuing its uptrend which started in October, Ethereum gained momentum in February. This followed a period of sideways movement in the $2,200 to $2,400 range throughout December and January
With the introduction of spot ETFs set to boost Ethereum's trading volume, the cryptocurrency initially surged in January but later retraced along with the broader market.
However, recent developments in the sector and upgrades to Ethereum's network have reignited optimism, propelling its value upwards once again.
Anticipation for spot ETF approval in the summer and a new network update are driving positive sentiment, alongside the milestone of a quarter of the total Ether supply being staked.
Currently, ETH is approaching its next resistance level of $2,850, based on long-term Fibonacci levels, after struggling to breach the Fib 0.382 resistance around $2,400.
Breaking through $2,850 marks a crucial step for ETH towards reaching $3,000. If daily closes above $2,850 are sustained, the Fib 0.618 level at $3,300 becomes the next short-term target, with further potential to rally toward $4,000 upon ETF approval.
In the event of short-term pullbacks, the 8- and 21-day exponential moving averages are expected to provide dynamic support, with the closest support range currently at $2,500 to $2,600.
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Historical data suggests that these averages have served as reliable support lines during previous uptrends, particularly evident in the January 20 breakout where ETH bounced back from the 3-month EMA.
Additionally, on the weekly Ethereum chart, the Stochastic RSI is showing signs of turning upwards again. A sustained floor above $2,850 could trigger a bullish signal from the Stoch RSI, indicating a continuation of the uptrend in ETH prices.
h2 2. Solana: Does the Rebound Have Legs?/h2During January, the correction of the September - December uptrend took place. This correction was limited at Fib 0.382, equivalent to an average of $85 according to Fibonacci measurement.
After SOL reclaimed the $100 threshold, the current bullish momentum faces the first resistance point at the recent high price of $125.
Looking back at historical peak and bottom levels, potential resistance zones lie between the $130 to $140 range.
Beyond this range, $160, corresponding to Fib 0.618 in the long-term outlook, emerges as a crucial point for sustaining the trend.
On the downside, while $110 currently serves as SOL's nearest support level, the $100 mark remains a focal point in a potential retreat.
A breach of the $100 threshold could prompt sellers to push SOL towards the 3-month EMA level at $85.
In conclusion, the momentum SOL can gather within the $125 - $130 range holds significant importance for the trend's continuation.
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