Ethereum, Solana Falling: Is This The Last Squeeze Before The Bull Run?

The cryptocurrency market turned bloody last week amid investors’ distaste of the hawkish stance of the Federal Reserve on the outlook of inflation and the interest rate cuts. Although Bitcoin dumped from near $70,000 to $65,000 altcoins suffered the strongest squeeze mirrored by major altcoins Ethereum and Solana.

With losses stomached and endured, of the most concern to investors is the potential for recovery and what could ignite the anticipated bull run in the second halftime of the year.

How To Navigate The Bearish Market For Maximum Gain

One of the daunting tasks investors are confronted with is knowing when to buy and sell crypto. These two key events separate winners from losers. If one enters the market at the bottom, they stand to gain the most as prices recover.

Entries near the peak or at the peak often become liquidity for those exiting to take profits. Therefore, as the crypto market bleeds, it is essential to buy low intending to sell high.

Since it is too difficult to time the top or the bottom, investors must consider other factors like the macro environment, the crypto landscape, particular projects, technical analysis, and more before making a move.

Looking at the current state of the market on CoinGecko, where the total cap has dropped to $2,43 trillion, buy-the-dip opportunities could be in plenty.

After breaching support at $3,400, Ethereum price is staring at a possible drop to $3,200. Similarly, Solana faces increasing sell-side pressure down 12.5% in the last seven days to $134.

Other altcoins are also in the red including Binance Coin which after recently peaking above $700, hovered at $577 at the time of writing. XRP is pivotal at $0.5 with crucial levels at $0.48 and $0.52, respectively.

Dogecoin and Toncoin close the top ten in that order, with declines of 10% and 9.5%. Other large-cap altcoins hit the most include Shiba Inu, Uniswap, NEAR, FET, and FIL—all with double-digit losses.

Ethereum Price Analysis As Last Line Of Defends Shakes

Ethereum hovered at $3,390 on Tuesday leaving $3,400 support turned resistance behind. Its general decline is within a descending channel whose support will come in handy if ETH drops to touch $3,350.

The next key level to watch is the support at $3,300 marked in green. Bulls have a task to uphold this level, failure to which Ethereum may crash to $3,200 and close in on $3,000, marking a strong bear trend.

For an uptrend to erupt amidst the ongoing crash, ETH price must close the day above $3,400. A rebound from this level could keep investor interest high and help cultivate recovery to $4,000.

Solana Price Balancing At The Cliff’s Edge

Solana is holding on support at $135 for dear life. SOL needs to defend this support strengthened by the continuous ascending trendline. Should declines continue below this level, SOL could plunge to $130.

In May, Solana tested support at $120 before recovering to $188 in the same month.

Based on the RSI chances of a recovery are rising but first, support at $135 must be assured. As the RSI moves toward the midline at 50, Solana will begin to gain momentum above $140 and subsequently $150.