$3,000 Is Next for Ethereum (ETH), Cardano (ADA) Shows Massive Breakthrough, Solana’s (SOL) Suspicious Rally

$3,000 Is Next for Ethereum (ETH), Cardano (ADA) Shows Massive Breakthrough, Solana’s (SOL) Suspicious Rally

Mon, 12/02/2024 – 0:30

$3,000 Is Next for Ethereum (ETH), Cardano (ADA) Shows Massive Breakthrough, Solana's (SOL) Suspicious Rally
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As the Ethereum network continues to evolve with its recent ERC-404 token standard being massively implemented, its native asset is finally gaining some traction on the market. It is showcasing promising growth, and its price trajectory suggests that the coveted $3,000 mark may be on the horizon.

An analysis of Ethereum’s price chart reveals a steady upward trend, with the asset recently crossing the $2,500 threshold. The next significant resistance level appears to be at $2,600, a point that has previously seen sellers stepping in. A break and hold above this level could pave the way for Ethereum’s ascent toward the $3,000 psychological and technical barrier.

ETH/USD chart by TradingView

Supporting this potential growth scenario is the continued development of the Ethereum network, including the anticipated benefits of the ERC-404 update. This new standard is expected to enhance the utility and interoperability of tokens on the Ethereum blockchain, potentially increasing demand for ETH as the required “fuel” for deploying tokens.

However, there remains a cautionary scenario to consider. Ethereum’s rival, Solana, has recently experienced a slowdown due to network outages, which could potentially cause a ripple effect across the broader crypto market. If such events lead to a loss of confidence in blockchain networks or a shift in investor sentiment, Ethereum could face a setback.

A potential price drop scenario could be triggered by technical rejections at the $2,600 resistance level, coupled with negative market sentiment stemming from issues in competing blockchains like Solana. Should Ethereum fail to sustain its momentum, a pullback toward the local support level at $2,300 may occur, where buyers have previously shown interest.

Cardano remains strong

Cardano (ADA) has recently demonstrated a significant breakthrough in price action, suggesting a bullish trend could be forming. Cardano’s price has been tracing an upward trajectory, recently punctuating this ascent by breaching a key resistance level.

A technical analysis of ADA’s chart indicates that the cryptocurrency has managed to surpass the resistance near $0.515, which had previously capped several attempts at an upward move. Closing above this level could signal newfound confidence among investors and pave the way for further gains.

On the growth front, if ADA sustains its momentum above this resistance turned support level, the next target for the asset could be the $0.580 mark. Such a move would represent a significant uptick in market valuation and could attract more attention to Cardano as a viable investment in the blockchain space.

However, every market scenario has its counterpart. Should ADA face rejection at higher levels, there is potential for a pullback toward the local support at $0.485. A drop below this point might compel traders to reassess the short-term outlook for Cardano, potentially leading to a consolidation phase or even a deeper correction if broader market sentiment turns negative.

Solana slows down

The recent price movements of Solana have caught the eye of many in the cryptocurrency community, with its ascent on the charts prompting discussions around the sustainability of its rally. Despite the uptick, there is a pervading sentiment of caution as the momentum behind the rise appears to lack conviction.

An analysis of Solana’s trading patterns reveals that while SOL has made strides to overcome resistance, achieving a local high of approximately $112, the rally’s foundation seems tenuous. The support level to watch is around $98.89, where SOL has previously found a degree of stability. Should the asset maintain above this level, it might dispel some of the skepticism surrounding its recent performance.

However, the growth scenario for Solana is shadowed by concerns of a potential breakdown. The momentum indicator on the charts suggests that the energy behind the rally is not as robust as investors might desire. If Solana fails to sustain the buying pressure needed to push higher, it could see a retreat back to the support level or even lower, which might trigger a more pronounced sell-off.

Published at Mon, 12 Feb 2024 07:14:00 +0100

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