Weakness In Major Cryptos: What Key Technical Metrics Indicate For Bitcoin, Ethereum, And Solana

Despite a slight recovery in cryptocurrency prices on Wednesday, experts remain divided on the future direction of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The market is at a crossroads, with some analysts anticipating a deeper correction, while others see the potential for a renewed recovery. Increased institutional adoption through exchange-traded funds (ETFs) is hoped to stabilize volatility.

iShares Bitcoin Trust ETF Hits 52-Week Low

The iShares Bitcoin Trust ETF is currently trading more than 20% below its recent 52-week high, reached less than a month ago. This peak coincided with a bearish evening star pattern, and the ETF experienced a notable 3% decline on October 7. The drop below the $70 mark has added to bearish sentiment, with the ETF declining in three of the last four weeks. This week alone has seen an 8% drop, and the ETF recently undercut its 200-day simple moving average, marking a steep 5.5% decline—the largest single-day drop since April 7. For investors to regain confidence, analysts assert that it is crucial for the ETF to hold near current levels and reclaim the 21-day exponential moving average (EMA).

Ethereum ETF Faces 17% Weekly Decline

Ethereum, represented through the Grayscale Ethereum Trust ETF, has experienced a more pronounced decline, now down 34% from its annual peak and showing a negative year-to-date performance of 5%. This week alone, the ETF has dropped 17%, roughly double the decline seen in the Bitcoin Trust ETF. However, this sharp pullback follows a significant increase of over 220% from early April to late August, making the current retreat appear both prudent and necessary. The fund has not yet pierced its 200-day simple moving average, having touched it recently while retesting a breakout above a bullish inverse head-and-shoulders pattern. If stability can be achieved, it may present an attractive buying opportunity, potentially forming a double-bottom base.

Heightened Concerns For Solana

Solana’s performance has been the most concerning, with its ETF plummeting 41% from its most recent 52-week high set in September. This heightened volatility may reflect the asset’s relative newness. The Solana ETF peaked on September 18 and has since formed a bearish island reversal pattern. Over the past seven weeks, it has fallen in five of those, with three weeks recording double-digit declines. This week alone, the ETF has dropped another 19% through just two trading sessions. A break below the bearish head-and-shoulders pivot at $19 raises concerns of a potential measured move down to $12.

Ultimately, a potential recovery for the trio would imply further inflows into these exchange-traded funds, indicating a new wave of bullish sentiment returning to the market. At the time of writing, Bitcoin is trading at $104,190, marking a 3% surge over the past 24 hours. During the same time frame, ETH and SOL also recorded gains of 5% and 4%, respectively.