Ethereum’s recent market performance has investors worried particularly because technical indicators point to an impending death cross. The bearish signal of the 50-day EMA crossing below the 200-day EMA may strengthen Ethereum’s downward trend and heighten selling pressure in general.
Short positions in Ethereum have increased by over 40% in a single week and by an incredible 500% since November 2024 suggesting the dire state of Ethereum’s social presence This pessimism about ETH raises the question of what Wall Street hedge funds know that ordinary investors do not. The February 2nd sell-off was another reminder about risks surrounding ETH.
After falling 37% in just 60 hours, Ethereum lost more than $1 trillion in the cryptocurrency market. This suggests that the selling pressure may be more structural in origin and linked to significant institutional wagers against the liquidity or asset issues. Even though the bearish signal is getting closer there is still hope.
Ethereum’s slow recovery from recent lows suggests that buyers are still stepping in at critical support levels. If ETH can continue to gain ground and stay above $2,600 the death cross might not even form. If the downward trend persists and ETH loses the critical support at $2,500 further declines towards $2,300 and even $2,000 may be in store.
Dogecoin sees more pressure
Dogecoin is feeling more and more pressure as it moves into bearish territory and its price action points to the potential for more drops. The 200-day exponential moving average (EMA) a crucial indicator that may signal more significant corrections is currently below the meme coin which was formerly recognized for its speculative rallies. Despite several unsuccessful attempts to regain important resistance levels DOGE has had difficulty maintaining its upward momentum.
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The assets inability to stay above its 200 EMA indicates that bearish sentiment is taking over which raises the possibility of more sell-offs. Historically as traders respond to the loss of a significant support level Dogecoin has frequently experienced additional declines when trading below this important indicator. A closer examination of Dogecoins recent market activity reveals mounting selling pressure which should market sentiment not improve could hasten its decline.
DOGE’s problems are aggravated by the absence of bullish catalysts and strong buying support. There is additional bearish confirmation as the asset encounters resistance from the 50 EMA. Dogecoins downward trend may continue as long as general market conditions remain uncertain.
DOGE might test lower support levels around $0.24 where buyers have previously expressed interest if it keeps going down. A further decline to $0.20 could be possible if this range is not maintained which would further support the bearish outlook. A short-term recovery might be possible though if buying interest returns and DOGE is able to regain its 200 EMA.
Solana aims higher
Consolidating at a critical local support level Solana looks poised for a significant bullish breakout. In contrast to many other cryptocurrencies that have experienced sharp declines SOL has been able to hold steady above important price ranges suggesting that an upward move may be imminent. As of right now Solana is trading at about $204 demonstrating tenacity in the face of market volatility.
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By establishing a strong support level close to $190 the asset has stopped further declines and indicated that buyers are intervening to protect this area. A bullish surge is still very likely as long as SOL stays above this crucial level. The market may be strongly confirming an impending rally with a breakout above $220. In the past Solana has shown rapid expansion following protracted consolidation close to support levels.
The possibility of an upward breakout would be further supported by a noticeable increase in buying activity. Furthermore Solanas technical structure is still more robust than that of many of its competitors which supports its capacity to beat the market. The next leg up could be big if Solana manages to break through the $220 resistance and maintains its hold above $190.
Any positive change could send SOL into a full-fledged rally so investors should monitor volume trends and market sentiment. Whether Solana is actually prepared for skyrocketing will be determined in the upcoming days.
Source: https://u.today/is-ethereum-eth-getting-ready-for-death-cross-dogecoin-doge-dips-toes-in-bears-territory-solana-sol