- ETH targets $2,850 resistance as lower transaction fees impact network activity and demand.
- SOL eyes $178 but risks dropping to $168 if selling pressure intensifies before month-end.
- Key support levels at $2,560 for ETH and $170 for SOL will determine their next price moves.
Ethereum and Solana are showing signs of volatility as traders navigate key price levels. Ethereum is attempting to reclaim $2,850, while Solana eyes a move to $178 before a potential drop to $168.
Ethereum has rebounded above $2,700 despite lower transaction fees weighing on demand. CryptoQuant data shows Ethereum’s average transaction fees have hit all-time lows, reflecting reduced Layer 1 activity. A similar drop in fees occurred during the August 2024 market downturn. The shift in network activity to Solana and Layer 2 solutions has further impacted Ethereum’s ecosystem. Lower fees mean fewer ETH tokens burned, increasing the total supply.
Technical indicators show that a major fight between bullish and bearish traders is taking place. Ethereum maintains its trading pattern as a rectangle shaped channel where $2,850 functions as the principal resistance point. The 100-day and 200-day Simple Moving Averages at $2,560 maintain a supportive position. Ethereum may exceed $2,850 price resistance if this support level proves resilient.
The resistance has remained strong around the 50-day SMA and 14-day EMA, both maintaining positions around $3,000. The 50-day SMA provides a longer-term trend outlook, while the 14-day EMA reacts faster to price changes, reinforcing the resistance zone. The Relative Strength Index (RSI), Stochastic Oscillator, and MACD histogram show potential bearish movement. This indicates that Ethereum may probably stay in a consolidation period before establishing its next significant direction.
Related: Whale Moves 23,330 ETH: Is ETH Heading for a Bearish Phase?
Solana, on the other hand, has faced a 10.6% drop in the past week but has outperformed Ethereum over the year. SOL has bounced off key support at $170, a level tested on January 13. This forms a potential double-bottom pattern, a historically bullish signal. If Solana holds above $170, it could surge toward $178.
Momentum indicators remain mixed. The MACD line is still below the signal line, indicating a bearish momentum, and the red histogram bars show a declining buying pressure. If buying pressure intensifies, Solana could reach $200, a key resistance. However, if sellers regain control, a break below $170 could trigger a drop to $168. A further decline could send the price toward the $150–$155 range.
Solana remains in a downward channel, keeping sellers in control. If $160 fails, the price could test $125–$130, a historically strong support. Traders are closely watching market sentiment as big token unlocks approach.
With Ethereum struggling at resistance and Solana testing key levels, traders are preparing for potential price swings before the end of February.
