Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    Ethereum price eyes $2,500 mark as Solana market takes a breather

    FXStreet
    Updated Dec 28, 2023 01:00
    Mitrade

    ●Ethereum price looks poised for a continuation of the uptrend, with several technical indicators favoring the upside.


    ●Meanwhile, Solana price is likely to face a correction after a multi-month period of SOL being massively overbought.


    ●ETH could rise almost 7% to hit $2,500 amid rising momentum and a possible pending buy signal.


    ●A  break and close below the critical support at $2,147 would invalidate the bullish thesis.  



    Ethereum (ETH) price looks poised for a shine after a prolonged contention against its peer in the Layer 1 space, Solana (SOL). This brings to mind previous reports where Solana founder Anatoly Yakovenko said he envisions a future where SOL and Ether co-exist, urging that the whole narrative of one ecosystem kills the other be binned.


    Ether displays upside potential as Solana price shows weakness


    Ethereum (ETH) price has spent the better part of December consolidating between the critical support at $ 2,147 and the $2,380 resistance level. Based on technicals such as the Relative Strength Index (RSI), the largest cryptocurrency may be poised to shine, at least for the short term.


    Meanwhile, the SOL market is exhibiting weakness, as the technical indicators hint at a possible dip in the Solana price. It comes after a prolonged period of SOL being massively overbought, indicated by the presence of the RSI above the 70 level since October 18, when the markets turned bullish. This preceded a correction.


    SOL/USDT 1-day chart, ETH/USDT 1-day chart, Source: TradingView.


    Ethereum price outlook with ETH shining at Solana’s expense


    After Solana price’s epic surge across the fourth quarter, the SOL market is taking a breather, with capital flowing into Ether. With this, Ethereum price looks ready to shine at the expense of Solana.


    The RSI is northbound, suggesting rising momentum. The Awesome Oscillators (AO) indicator remains in the positive territory, adding credence to the bullish thesis. Increased buying pressure above current levels, therefore, could see Ethereum price rise, potentially flipping the $2,380 resistance level to a support before testing the $2,403 range high.


    In a highly bullish case, the gains could extend for Ethereum price to tag the forecasted $2,500 psychological level, in a move that would constitute a 7% climb above current levels.


    ETH/USDT 1-day chart, Source: TradingView.


    On the other hand, if the $2,380 roadblock holds as resistance, the ensuing rejection could see Ethereum price lose the critical support at $2,147, below which the bullish outlook would be invalidated. In the dire case, Ether market value could descend to test the supply barrier that now acts as a bullish breaker between $2,049 and $2,107.


    A break and close below the midline at $2,075 would confirm the continuation of the downtrend, with Ethereum price likely to spiral towards the $2,049 support, levels last tested in November.  


    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    Do you find this article useful?