Second biggest cryptocurrency on market might hit desired price level sooner than expected
As the bloodbath on the market rolls along, most assets have reached their lowest levels in months, and Ethereum is no exception. In the last 24 hours, Ethereum has entered its 2022 lower price range, which might become the foundation of a massive bounce.
Two successful moves
In July and November, Ethereum successfully bounced off the price range we mentioned above. The $1,100 threshold acted as a strong support level for ETH twice, which allowed the second biggest cryptocurrency on the market to rally to almost $2,000 back in July.
Usually, thresholds like that attract enormous buying volumes, becoming “diamond” supports that usually do not get broken without unusual volatility spikes caused by certain news or fundamental changes that affect traded assets.
While the price of $2,000 is too bold to call the next target for Ethereum, a spike in buying volume will most certainly form a guideline for ETH and a new uptrend. However, there are a few resistance levels that might interfere with Ether’s recovery.
The first resistance is located at the $1,650 price threshold and represents a breakdown point of Ethereum. Back on Nov. 5, ETH failed to break through the local resistance level of $1,685, forming a strong resistance around that price level.
Unfortunately, Ethereum is currently going through a tough stage as the number of institutional investors are actively dumping their ETH holdings on the market in order to gain more liquidity amid the crisis on the market.
FTX, Jump Crypto and others have already sold hundreds of millions of Ethereum in the last seven days, causing a plunge from $1,348 to $1,100. At press time, Ether is trading at $1,100 and gaining around 0.5% to its value in the last 24 hours despite the negative performance of the market.
Solana feels even worse
While Ethereum’s status on the market looks and feels depressing, the current position of Solana is even worse. Yesterday, SOL trading pairs across various platforms reported the lowest trading volume seen in the last 1.5 years.
Such a rapid drop in trading volume shows the sentiment of SOL holders overall as they are trying to leave the market at an extremely rapid pace. The price performance of Solana correlates with this thesis as the cryptocurrency lost more than 51% of its value in the last six days.
Thankfully, a massive volume of unblocked SOL has not hit the market as swiftly as we anticipated, which is why we see an absence of a volatile crash that would send SOL to 0. The market data did not show any abnormal volume profiles a few days ago, suggesting that almost 100 million SOL have not been injected onto the market.
At press time, Solana is trading at $18 with a 5.7% price drop in the last 24 hours and moving $7 above the the local low.