Ethereum Scores Over 7% Gains, What’s Up?

After facing a market-wide correction, several coins, including Ethereum and Solana, have recorded substantial gains in the past week. Earlier today, Ethereum reached a 24-hour high of $1,652 before dropping to $1,602 at press time. The Ethereum killer Solana also peaked at $33.74 on the day. However, it has fallen to $32.66.

Although both have suffered some losses on the day, the coins have kept impressive profits in the last seven days. The top-ten tokens by market cap recorded a weekly gain of over 10%. Ethereum and Solana are poised to finish the month of October strong if they continue at this pace. 

After months of decline, the price of Ethereum appears to be following the market’s lead. It found key support near the $1250 level, pushing its price above the descending channel pattern. The price is testing and likely breaking above the major negative trendline. 

According to traditional price action, the market should be able to break over the $2,000 resistance level relatively easily. Anyway, the 200-day moving average is hovering around the $1700 mark, which might be a significant barrier for Ethereum. After months of slumping, Ethereum’s structure would turn bullish if the price breaks above the moving average and the $2000 zone. As a result, ETH’s price can go up in the mid-term.

The 4-hour chart is similarly bullish, with the market impulsively breaking over the $1400 level and heading into the $1800 barrier area. However, a bearish divergence is visible in the current RSI indicator. There appear to be limited static resistance points before the $1800 level. Therefore, a correction or reversal may be on the horizon in response to this signal. The $1400 level might act as a critical support level and propel the price higher if a major correction occurs.

Solana currently trades at $32.66, with a 24-hour volume of $1,166,152,851. The price of Solana has fallen by less than 1% in the last day. Over the past day, trading volumes have reduced marginally. Plus, the altcoin’s Volume to Market Cap Ratio is still quite low.

SOL Coin’s price peaked at $260.06 on November 6, 2021, and it has struggled to recover to that level ever since. At present, the Solana price is rising, and the coin is trading above the 20, 50 simple moving averages with a bullish bias. This suggests that it may retest the $35 barrier level. Moreover, a golden cross is imminent as the 20 SMA on the four-hour chart has recently crossed above the 200 SMA. But the support is currently at $30.

Several indicators suggest bullish momentum for Solana. Firstly, the signal line is above the MACD line, approaching a positive zone. An additional piece of evidence supporting the bullish case is the growing histograms. The relative strength index (RSI) is currently at 57.91. This is favorable for the bulls but is quickly approaching overbought levels. As a whole, the market is bullish based on these readings.