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.
ETH Whales Accumulate 300K ETH Worth $1 billion in 2 Weeks
Moreover, the spike in network activity suggests that new capital is flowing into the Ethereum ecosystem, suggesting a potential bounce.
ETH Network Growth Hints New Capital Inflow
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.
ETH/USDT 1-day chart
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.
