The question being asked is when will the market turn bullish again? And what is resistance and how does it factor in?
According to Binance Academy, resistance is defined as: “…a level in which the price of an asset fails to break through due to strong selling pressure. In some cases, the occurrence of resistance levels may also be related to big sell walls, that prevent the price from rising further.
So a resistance level is expected to act as a “ceiling,” caused by a large supply of sellers in that price area. As such, traders can interpret resistance as a level that can only be surpassed with significant buying pressure.’
A closely tracked crypto strategist is mapping out high timeframe scenarios that will inspire bullish momentum in Ethereum (ETH) and two of its leading competitors.
In a new strategy session, pseudonymous crypto analyst Cred says Ethereum is currently trading below crucial weekly support and bulls must reclaim it to have a shot at igniting a 30% surge from current prices.
“I think for ETH it needs a weekly close above $1,930, $1,940 or thereabouts. This previous high [$1,930] is a bit of an inflection point… and still resistance at the moment… In this environment, it’s worth being conservative in general.
My eye is certainly drawn towards previous range support, presumably now turned resistance [$2,600] as an area to derisk those range-low reclaim buys and that’s kind of in the mid to high $2,000s.
I’m sure if I were to add these boomer moving averages, they sort of converge in that area as well.”
In technical analysis, the reclaim of high timeframe support is a bullish signal indicating the presence of demand and potentially seller exhaustion.
At time of writing, Ethereum is valued at $1,812.
Next up is fellow smart contract platform Solana (SOL), which Cred says has the potential to ignite a significant rally as long as bulls can recover a key support area.
“Prior range-high level at around $46 or thereabouts. To me, this needs to clear that and close back above $46 and then we can have a conversation about a move towards $80, and that’s a pretty big move. There’s like 60% – 70% there, and it’s worth waiting for.”
At time of writing, Solana is changing hands for $38.97.
The last coin on the trader’s radar is Avalanche (AVAX). According to Cred, AVAX looks relatively strong as it manages to continue trading above a key support level.
“AVAX has this really important weekly range low at $23 or thereabouts, and it’s closed above it for the second consecutive week. It’s decent. At least support is holding.”
Looking at Cred’s chart, the range high target for AVAX is $39. At time of writing, Avalanche is trading for $24.47.
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