Solana, Ethereum Price Analysis: September 20, 2021

Solana, Ethereum Price Analysis: September 20, 2021
  • Solana drags the extreme volatility into the new week as losses return to $140.
  • Ethereum loses more ground following last week’s rejection from highs above $3,600.
  • Cryptocurrencies are back on the drawing board after starting the week while nursing. As reported, Bitcoin plunged from highs almost at $49,000 and tested support at $45,000. Ethereum is back to trading below $3,200 while Ripple is teetering below $1.

    Solana is the most affected crypto asset in the top ten after posting double-digit losses. Cardano is down 8.8% to trade at $2.15, according to live price data by CoinGecko.

    Solana:-

    Solana has been highly volatile in the last couple of weeks. Initially, this Ethereum rival exploded to a new all-time high of around $215. However, a widespread crash in the market resulted in massive losses testing $150.

    Subsequently, losses continued last week after Solana suffered a blockchain hitch causing it to stay offline for several hours. Volatility surged as dropped to test close to $132.

    Nonetheless, Solana currently enjoys institutional and retail investors who keep taking advantage of the dips to buy more SOL tokens. Hence, the smart contract token sprung up to highs slightly above $170. The 61.8% Fibonacci level limited the price action, resulting in the most recent correction to $140.

    Solana is trading at $144 at writing as bulls attempt to push the price upward. Its immediate upside is capped at the 38.2% Fibonacci level, while more resistance is expected at $160, as highlighted by the 50% Fibo.

    Note that the downtrend has more weight at the moment, as reinforced by the Moving Average Convergence Divergence. Therefore, another four-hour close below the 38.2% Fibo would trigger more sell orders and perhaps push Solana to the 200 SMA near $120.

    SOL/USD Four-Hour Chart

    Ethereum:-

    Ethereum extended the correction from last week’s highs above $3,600 to areas slightly below $3,200. The declines in tandem with the rest of the market, with Bitcoin dropping to $45,000. Several tentative support areas did little to halt the spiral and seem to have flipped into crucial resistance zones.

    Meanwhile, Ethereum is trading at $3,201 as bulls renew their strength to push for gains above $3,400, a hurdle formed by the 200 SMA and the 50 SMA on the four-hour chart.

    ETH/USD Four-Hour Chart

    The MACD will have to flip bullish in the coming sessions to validate the recovery attempt. In the meantime, prevailing overhead pressure cannot be ignored.

    Source