Solana and Ethereum Seek Reversal Amid Market Pressure: Key Levels to Watch
Market Overview: Continued Pressure
The cryptocurrency markets remain under pressure, extending their downward trend into the new week. Despite some tentative buying attempts near recent lows, overall momentum remains negative with no clear sign of a reversal. Bitcoin dipped below $65,000 this week, revisiting its lowest level since mid-May. Buyers are struggling to defend the key support zone that has held for the past month, raising concerns about a potential deeper decline. Solana continues to experience selling pressure, while Ethereum shows some resilience.
1. Ethereum: Is the Correction About to End?
Boost from SEC News
Ethereum bulls received a boost this week following positive news from the SEC. The recent closure of the Ethereum 2.0 filing triggered renewed buying around the $3,300 level, seen as a positive indicator for potential ETF trading approval in July.
Key Resistance and Support Levels
Examining the daily Ethereum chart, the correction has slowed since June 11th, with daily closes consistently above $3,450. In the short-term, the $3,560-$3,590 range acts as a key resistance zone. Surpassing this area could lead to a potential test of the $3,620 level. A sustained close above $3,620 for a week might trigger an acceleration towards $3,820, a crucial level for continuing the uptrend.
Downside Risks
On the downside, the $3,400 level serves as critical support to prevent a steeper decline. A daily close below this level could trigger a surge in selling pressure, potentially pushing ETH down to the $3,000-$3,100 range.
2. Solana Tumbles: Is a Rebound in Sight?
Recent Price Action
Solana’s recovery attempt in late May stalled around $180, with sellers pushing the price down to initial support at $165. Continued selling pressure dragged Solana below the stronger $140 support.
Technical Indicators
Short-term EMAs on the daily chart are poised to cross below the 3-month EMA, suggesting a potential continuation of the downtrend. The Stochastic RSI remains flat in oversold territory, indicating no imminent rebound.
Potential Support and Resistance
These signs suggest further selling pressure on SOL as long as it stays below $140. A potential downside target could be $126 support. However, a weekly close above $140 could signal easing selling pressure, with a short-term recovery possibly starting above $150.
3. FET Soars on Renewed Merger Hopes
Impact of Merger Announcement
FET (Fetch.ai) surged in price following a surprising announcement: a delay in the highly anticipated merger of three major AI tokens. Originally scheduled for June 11th, the merger was postponed to July 15th, causing a temporary dip in FET’s price.
Investor Response
Reassuring statements from developers and a supportive announcement from Binance quickly reversed the downtrend. Investors, eager to accumulate ASI tokens before the official merger, are fueling the rise in FET’s price.
Price Outlook
Technically, FET found support at a key level after a significant drop earlier in June. This, along with the upcoming merger, has propelled the price back above $1.57. Analysts predict a potential rise to $1.9 or even $2.4-2.7 before the official merger date. However, investors should be cautious, as negative news could trigger a rapid decline, potentially pushing the price below $1, with support around $0.95 in a bearish scenario.
