Bitcoin dropped 6% from ATH of $109K, causing crypto markets to crash. But Ethereum (ETH) price trades above $3,100, showing strength as Solana crashes 22% along with the other altcoins. Is this peculiar behavior strength or stagnation? Will ETH rally higher soon?
Ethereum Price Holds Above $3,100 as Solana Crashes 22%
Ethereum price trades above $3,100 and has been hovering in the $3,100 to $3,300 range for the past week. As noted in a previous CoinGape article, ETH has dropped into the buy zone, extending from $3,057 to $3,132.
Solana has been fading since hitting the ATH of $295.83 and has crashed 22% so far. As noted by the analyst, SOL created a bearish signal called Swing Failure Pattern (SFP), which currently hints at a 23% crash.
$SOL at a precarious position here.
unlikely it drops so much, but needs BTC to show some strength here, or it all goes to shit IMO.wdyt? pic.twitter.com/I6heYxMkd8
— MAXPAIN (@Mangyek0) January 25, 2025
Why Does Ethereum Price Show Strength?
Despite the lackluster performance in 2024, ETH price has remained a laggard. But the recent accumulation of $175 million worth of ETH tokens from Donald Trump’s World Liberty Financial has caused investors to speculate about a comeback.
As noted by MAXPAIN analyst, Ethereum whales are on an accumulation spree and scooped 300K ETH worth $1.08 billion.
Moreover, the spike in network activity suggests that new capital is flowing into the Ethereum ecosystem, suggesting a potential bounce.
All in all, the outlook for ETH, an underdog, has been growing bullish. Ethereum price prediction notes that it will likely trigger a volatile breakout soon.
Ethereum Price Analysis Forecasts $4,000 Target
Ethereum’s falling wedge setup is in the final stages, a make-or-break moment. A bounce off the $3,057 to $3,132 support level will maintain this bullish technical formation. A decisive daily candlestick close above the wedge’s upper trend line around $3,360 will confirm a breakout.
In such a case, the falling wedge forecasts ETH price could rally 17% and target $4,000.
Three key resistance levels that could interfere with this uptrend are $3,297 and $3,477 and $3,592. These hurdles are previous weekly VWAP, anchored VWAP since November 17, 2024 and previous monthly VWAP, respectively.
VWAP is Volume Weighted Average Price, which means that demand/supply dynamics at these levels will play a pivotal role in determining the directional bias of ETH. Hence, investors need to pay close attention to these levels.
On the other hand, a breakdown of the $3,000 psychological level will confirm a breakdown and invalidate the bullish thesis. Such a development could trigger a 13% crash to $2,657.
The post Why Ethereum Price Sustains Above $3,100 As Solana Crashes 22%? appeared first on CoinGape.
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