The cryptocurrency market, which was stable over the weekend, faced a quick sell-off after political issues arose with President Donald Trump’s move to fire Fed member Lisa Cook on Monday.
At the end of last week, statements from Fed chair at the meeting were seen as a clear sign of an in September, which was positively received by risky markets. However, events in the last 24 hours have led to increased selling, erasing the gains made from Powell’s comments.
Bitcoin is trying to stabilize around $110,000 after dropping to $108,000. Ethereum, meanwhile, is looking to maintain its short-term upward trend after nearly reaching $5,000 on Friday.
, a major altcoin, also hit a record high, reaching $900 by the end of the week. However, profit-taking and concerns about the Fed’s independence led to a downward adjustment, bringing BNB back to its upward trend line.
has been trying to break into the $200 range since July. Recently, it made a strong attempt to stay above $200 and was performing well over the weekend. However, the latest negative events, including the Trump-Fed tensions, also impacted Solana negatively. As a result, despite growing interest from institutions, SOL’s price dropped sharply to around $185.
Can Ethereum Reach Its $5,500 Target?
Over the weekend, Ethereum reached a new high of $4,955 but couldn’t maintain that level or achieve a daily closing record. Recent price movements indicate ongoing selling pressure in the $4,670-$5,000 range, marking it as a strong resistance area.
Yesterday, the rapid selling slowed down at the 21-day EMA ($4,320), which has been a reliable support level since early August. This alignment with Ethereum’s short-term trend suggests that it has been following an upward trajectory due to increasing bullish momentum since last month.
Globally, many believe that the Fed will soon start cutting interest rates, particularly after Powell’s comments. This positive outlook has prompted signals that Ethereum’s upward trend might continue. However, a surprise event yesterday caused market instability, causing the Stochastic RSI, which was rising, to shift back into the selling zone.
If Ethereum (ETH) can maintain daily closes above the $4,320 support level, it could continue its uptrend. This stability might encourage more buying activity, potentially allowing ETH to test the resistance levels again. Initially, the $4,670 level will serve as the first resistance point. If ETH can surpass this, the next target would be the $5,000 level. Should a breakout occur beyond these points, ETH could potentially move toward the $5,500 range in the short term.
On the downside, if selling pressure persists and ETH falls below $4,320, it could first drop to around $3,980. Falling further could result in a retreat to the main uptrend, meaning a potential decline to approximately the $3,600 range.
Binance’s Post-$900 Correction: Key Support Levels to Watch
After reaching a record high in August and hitting $900, BNB experienced a pullback. During the recent sell-off, it found some stability at an intermediate support level between $835 and $840, which aligns with the Fibonacci 1.414 level. However, the recent peak at the Fibonacci 1.618 level suggests that the bullish phase might be ending. To confirm this, short-term support levels will be monitored closely.
The first key support to watch is around $835, where the parabolic uptrend intersects with the 21-day EMA. If BNB closes below this level, the correction might become more noticeable. Additional support levels to watch out for are at $810 and $750 according to Fibonacci levels.
Conversely, if BNB experiences a strong buying wave this week and rises above $840 with significant volume, it could attempt another move towards the $900 level.
Solana Stuck at $200: Pullback Ahead or Ready for Another Push?
SOL has been trying to break the Fibonacci 0.618 level at $200 since last month, maintaining its uptrend that began in April. This level was tested again over the weekend but couldn’t be surpassed due to market negativity about the Fed.
Currently, SOL’s closest support level is around $185. If SOL stays above this level, and if the market can overcome the negative sentiment, it might make another attempt to reach $200. However, the market is currently more sensitive to negative news.
So, if global market conditions worsen further, SOL’s price could drop to its second support level at $165, continuing the downward trend. On the other hand, if SOL remains above its rising trend line during this week’s market fluctuations, its chances of establishing a base around the $200 mark will improve.
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