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Trader Insights: Ethereum Poised for a Bullish Breakout, Solana Trending Strongly Higher
- Ethereum pushing for a technical bullish breakout
- Solana, Doge, Cardano, and Avalanche trending strongly higher
- The news flow and developments driving the upside in crypto
- Getting set for a further run higher in crypto
The Technical Set-up for Ethereum
On the daily timeframe, the retracement from the highs on 24 August into 4270 was met with strong buying interest, and the sellers failed to push price through what evidently became a floor — a platform from which we’ve since seen price turn higher. Since then, the daily ranges have expanded, upside momentum is building, and the bulls are gaining increased control of the structure.
The traders who initiated long positions during the run higher from 4270 to current levels will be eyeing overhead resistance at 4500/10 and wanting to see a closing upside break through the short-term range highs. If realised, this would increase the likelihood that new money will be compelled to chase the move higher, with increased inflows into ETH ETFs and increased buying from ETH treasury entities also likely to build. Those set long of XETUSD know their risk in the trade, and many will have placed stops below 4270 — potentially even looking at squaring and reversing if the price were to roll over and break below the recent lows at 4270....
For now, the set-up for ETHUSD on the higher timeframe looks constructive but still requires a closing technical break to further increase the probability of upside momentum.
Solana, Doge, Cardano, and Avalanche Trending Strongly Higher
While the move in ETHUSD still needs work, we’re seeing strong underlying momentum in Solana, Doge, Cardano, and Avalanche. Certainly, SOLUSD looks the goods, although its rally started back in June and is far more mature than that of the other larger alts, with price now up 145% from those lows.
The question for the momentum players is whether this can continue to run hot and push towards the January highs of 295, or whether to position for a swing into potential profit-taking.
The news flow and developments driving the upside in crypto
The recent news that the NASDAQ exchange has filed plans with the SEC to pursue tokenisation and blockchain listings of equities is clearly resonating with the crypto community and it could be a major kicker for the upside case for a number of the altcoins. However, the scope for tokenised markets is becoming far broader, with BlackRock looking to make ETFs available as tokens, and other asset classes such as fixed income also in the mix.
Solana and Ethereum are seen as key beneficiaries of these developments, as they are best placed for blockchain settlement processes. This suggests that as the tokenised settlement of markets becomes increasingly mainstream, the case for higher levels in these alts should strengthen too. We can also consider the positive tailwinds to crypto from increasing liquidity (rates cuts, increased money supply), as well as from the flow-based effects from crypto treasury entity purchases, ETF inflows, and momentum-driven systematic accounts (CTAs), these could all feasibly come together to create a solid bull trend.
Of course, there remains the obvious risk that the trends could reverse if the macro backdrop becomes less supportive and we see risk coming out of the equity markets, and higher cross asset volatility.. But for now, broad financial conditions are highly supportive of further appreciation for crypto.
Good luck to all.
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