Ethereum Is Mirroring Bitcoin’s Price Action: Is This a Good News or Bad News?

Analyst Josh of Crypto World said that the Bitcoin price is now flashing a new short-term signal that requires attention and Ethereum is rejecting key resistance after bouncing from key support. As soon as the new CPI numbers were released, showing 3.3% year-over-year inflation, Bitcoin saw a quick pump in price.

This was followed by the Federal Reserve’s meeting, where they decided to keep interest rates unchanged. However, the Fed hinted at fewer rate cuts later this year, potentially only one instead of the two to three cuts many expected. This led to a “buy the rumor, sell the news” scenario: the bullish CPI numbers caused an initial pump, but the Fed’s more cautious stance on rate cuts led to a retracement of those gains.

What’s next for Bitcoin?

The analyst noted that the recent events negatively impacted Bitcoin’s price. Currently, the Bitcoin charts show a period of consolidation in the short term, while maintaining a larger bullish trend on longer time frames. 

Additionally, Bitcoin is forming an inverse Head and Shoulders pattern, a bullish indicator, contingent on breaking above the $71.7K to $74K resistance levels. The potential target for this breakout is around $86K to $87K. 

Support for Bitcoin is currently at $67K to $68K, with resistance between $72K and $74K, leading to a neutral outlook while the price remains in this range. 

What’s next for Ethereum?

The analyst then said that in the short term, Ethereum recently bounced off the 38.2% Fibonacci level of support, around $3,480, on the logarithmic settings. Below this level, the 50% retracement support is at approximately $3,340, and the golden pocket support lies between $3,170 and $3,220.

On the 8-hour ETH to USD chart, Ethereum’s price mirrored Bitcoin’s action by bouncing from around $3,450 but is now facing resistance at the golden pocket area, between $3,600 and $3,650. If ETH breaks above $3,650 with confirmed candle closes, further resistance is expected between $3,800 and $3,900.

What’s next for Solana?

Moving on to Solana, he said that the coin is showing similar price action to Ethereum. Solana has bounced almost perfectly from the support area between $140 and $144, specifically around $145. It is now encountering strong resistance at $160, which has been a significant level of support and resistance in the past. If Solana price breaks and closes above $160, the next resistance zone is between $170 and $175. However, as long as Solana remains between this support and resistance, it is likely to continue trading in a choppy sideways range in the short term. 


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