Cryptocurrencies have recently experienced sharp volatility that pushed the prices of Ethereum-ETH and Solana-SOL currencies down significantly in August, and continued to decline by 2.60% and 4.34% respectively in early September, prompting investors to closely monitor their performance to see if September holds opportunities for recovery. Below, our article reviews the technical analysis of the current prices of both currencies, so let’s explore together some strategies that may represent potential trading opportunities.
Technical Analysis of Ethereum Price Amid Continuing Downward Momentum
Ethereum is currently trading at $2,459.81, with a daily trading volume of $8.39 billion. Despite topping the list of cryptocurrencies by market capitalization with $295.93 billion, they lost more than 20% of their value in August.
Ethereum Price Forecast, Source: TradingView
The price of leading altcoins is having trouble consolidating above the extended uptrend line formed since mid-August, which currently points to $2,458.
Current Ethereum price: $2,459.81.
Daily trading volume: $8.39 billion.
Market capitalization: $295.93 billion.
Relative Strength Index (RSI): 35 (signifying bearish momentum).
On the 4-hour chart, Ethereum is currently holding below the exponential moving average line over the last 50 candlesticks at $2,560, suggesting that the wave of declines is likely to continue, and if the price fails to maintain its current support level, the next key support level worth watching will be $2,395, and any further decline could push the price to test $2,272.
However, breaching above the $2,531 resistance level could give the upside momentum, with the next resistance level targeted at $2,669. Here are the main levels to watch:
Support: $2,395 followed by $2,272.
Resistance: $2,531 then $2,669.
Solana Price Technical Analysis: The Descending Channel Under Microscope
Solana’s coin is currently trading for $130.90, with a daily trading volume of $1.25 billion. Despite topping fifth place by market capitalization at $61.08 billion, its price fell sharply in August, mimicking the downward trend of Ethereum’s price.
Solana Price Forecast, Source: TradingView
The two-hour chart shows the currency moving within a bearish trading channel, with resistance around $136 and support at $116.
Current Solana price: $130.90.
Daily trading volume: $1.25 billion.
Market capitalization: $61.08 billion.
Relative Strength Index (RSI): 36.25 (indicating bearish momentum).
On the two-hour price chart, the exponential moving average line measured over the last 50 candlesticks, currently stable at $139, continues to act as a buffer to keep the rally from continuing, and if the price fails to break through the $136 resistance level, the selling may continue and push it to test the next support levels at $123.95 and $116.55.
Therefore, extending the pullback below the lower band of the descending channel may accelerate the sell-off and retest the $110 level, but if it manages to break through the $136 level, it could gain upward momentum that could test the $143.83 and $152.18 resistance levels. Here are the main levels to watch:
Support: $123.95, $116.55 and $110.
Resistance: $136, $143.83 and $152.18.
Conclusion: Technical analysis indicates the price movements of my currency
ETH and SOL tend to take a strong downward trajectory and test crucial support levels, so traders are advised to be cautious and monitor these levels closely, breaking them could lead to further pullbacks, and although there is a possibility of improving their performance in September, current technical indicators suggest a cautious trading approach.
Read also :An important indicator indicating the opportunity to buy Bitcoin at this level
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