Ethereum (ETH) and Solana (SOL) Hit Resistance: Price Analysis

As Bitcoin (BTC) makes another all-time high and could go even higher, the top layer 1s, Ethereum ($ETH), and Solana ($SOL) have also made hay. However, they have hit strong resistance, and are in overbought territory. What’s next for both?

$BTC breaking down? Will altcoins do the same?

Bitcoin is the daddy of the cryptocurrencies and of that there is absolutely no doubt. For the altcoins to run, Bitcoin will need to run first

Currently, things are on a knife edge for Bitcoin as to whether Wednesday’s $3,000 surge to a new all-time high will continue, or whether this move is about to break down, given the oversold nature of the king of the cryptocurrencies right now.

$ETH meets with solid rejection at $2,800

Source: TradingView

Looking on the short-term time frame for the $ETH price it can be seen that the price is now nicely above the major 2,500 horizontal level. However, the recent attempt to surpass the $2,800 horizontal resistance has been met with a solid rejection by the bears.

Given how overbought $ETH is on practically every time frame, even up to the weekly, a continuation of this rejection is probably the only game in town right now

A period of sideways and down price action for $ETH?

Source: TradingView

The weekly view for $ETH shows how important the current horizontal resistance level is. The price structure above this level builds on the firm structure underneath. Once the price gets above and confirms, this would turn into very strong support, enabling the $ETH price to be let loose.

All this said, it does not look like it will happen this time. In order for the Stochastic RSIs to reset, the price will need to go sideways and down for a period of time. The bulls will hope to hold the price at the major $2,500 horizontal support level, with perhaps the ascending trendline also offering some support.

A $SOL rejection from resistance inevitable?

Source: TradingView

The 4-hour chart for $SOL shows a similar rejection as for the $ETH price. This is a strong resistance level, and with $SOL being overbought on most time frames, a rejection seems inevitable.

Weekly chart shows there could still be upside for $SOL

Source: TradingView

However, on the weekly time frame, it would appear that there is still hope for further upside for $SOL. The Stochastic RSI indicators have crossed back up, the MACD is also showing a positive cross, and green histogram bars are starting to build higher. On the RSI, the indicator line is above the yellow moving average line, and is angled slightly upward

Can $SOL still keep moving higher with $BTC perhaps losing momentum? This remains to be seen.

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.