Solana (SOL) and Ethereum (ETH) are showing major price trends and increased trading volume. Solana’s price is testing previous cycle highs as it consolidates just below all-time highs against USD.
Meanwhile, Ethereum has spiked in value, coming close to the strong $4,000 resistance level. Because the market activity of these two cryptocurrencies is heightened, we see the price movements of these two cryptocurrencies and their derivative markets representing potential places for traders to capitalize on the opportunity and where the risk lies of having a volatile market.
Solana’s price action and market dynamics
Solana’s price is $243.65, up 4.57% in the past 24 hours. Solana is seeing strong market activity, with a 24-hour trading volume of $8.2 billion and a market capitalization of $115.8 billion. The market is dominated by long positions, especially on platforms like Binance and OKX, indicating bullish sentiment.
Source: Coinglass
Liquidation data, however, is pretty volatile, as $23 million got liquidated within the past 24 hours. Data shows longs and shorts will both be hurt by price surges as shorts get squeezed.
The Solana chart shows a recent correction where its price went as low as $220, but the asset looks to be forming a higher low. That implies strength within the uptrend. The market is neither overbought nor oversold, as the RSI leveled at 58.26.
Source: TradingView
At the same time, falling MACD histogram bears suggest the bullish reversal. Support near $220 and resistance at $260 provide key levels to watch, with the price poised to break higher above it should it do so.
Ethereum’s strong bullish momentum
Ethereum is up 5.93% in the last 24 hours to $3,935.03. Solana’s daily trading volume of $65.37 billion is lower than the asset’s. The market capitalization of Ethereum is $473.94 billion, and the circulating supply is 120.44 million ETH coins.
Source: Coinglass
The derivatives market for Ethereum is also seeing a surge in activity. The volume has spiked by 57.13% to $85.47 billion, and open interest has increased by 8.99%, reflecting rising trader confidence. However, short liquidations have occurred, indicating that recent upward price action has caught bears off guard.
Despite the bullish momentum, Ethereum’s RSI is at 72.57, suggesting the asset is nearing overbought conditions. The MACD line is above the signal line, confirming ongoing bullish momentum.
Source: TradingView
However, as Ethereum approaches the $4,000 resistance level, traders should be cautious. If Ethereum manages to break through this resistance, the next targets could be near $4,200–$4,300. On the other hand, a rejection at $4,000 could lead to a pullback to support levels near $3,500.
