Ethereum, Solana, Avalanche Technical Analysis: These coins are Next in Line for a Strong Rally

As Bitcoin hits record levels, altcoins are also gaining attention and forming bullish price action. Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) position themselves among many altcoins for the next surge. The rising optimism among derivatives traders fuels Ethereum’s bullish momentum. This sentiment has driven open interest in Ethereum futures to record levels, signalling investor confidence. On the other hand, institutional investors maintain a bearish stance, with ETFs experiencing net outflows for six consecutive days.

Moreover, Solana has broken record levels, boasting a market cap of $121.02 billion. Its circulating supply is 474.69 million SOL out of a total supply of 588.78 million SOL. On the other hand, Avalanche (AVAX) has surged by 11.45% to $39.42, with a market cap of $16.13 billion, within the past 24 hours. Its trading volume has also spiked by 51.78% to $1.38 billion. The price action for Avalanche suggests it is forming bullish momentum and preparing for a strong surge.

Ethereum (ETH) Technical Analysis

Ethereum Daily Chart – Bullish Price Action

The daily chart for Ethereum shows that a price rally has begun following the formation of a bullish price pattern observed between August and October. Price corrections were quickly reversed during this period, highlighting strong price momentum. This bullish setup led to a surge in November 2024. The resistance at $2,940, marked by the black dotted trend line, was broken, and the price is now heading toward the $3,500 resistance zone. The $2,960 level, which aligns with the 200 SMA, serves as strong support in the event of a price correction.

Ethereum 4-hour Chart – Bullish Formation

The 4-hour chart for Ethereum shows a similar pattern, with the price breaking above $3,220 and consolidating around the $3,375 region. A breakout above $3,375 could push the price toward the $3,500 zone, representing a strong resistance level on the daily chart.

Solana (SOL) Technical Analysis

Solana Daily Chart – Bull Flag Pattern

The daily chart for Solana shows that the price has broken out of a bull flag pattern at $182, initiating a strong upward surge. The 50 SMA crossed above the 200 SMA as the price broke through the $182 resistance, signalling that the price will continue rising over a longer period. However, the RSI is consolidating at overbought levels, suggesting that any correction in Solana’s price could present another buying opportunity for investors.

Solana 4-hour Chart – Ascending Broadening Wedges

The 4-hour chart for Solana shows that the price is trading within an ascending broadening wedge pattern, which typically indicates strong price volatility. The formation of multiple ascending broadening wedges, represented by the black dotted trend lines, suggests that the price has been overextended in the short term.

The upper limit of the black dotted trend line indicates a maximum level of $265. A short-term correction may occur as the RSI is in the overbought zone on the daily chart. The price appears overextended on the 4-hour chart, further signalling the potential for a pullback. This correction could present a buying opportunity for investors.

Avalanche (AVAX) Technical Analysis

AVAX Daily Chart – Cup Pattern

The daily chart for Avalanche indicates that the price is emerging from a cup formation, a highly bullish pattern. The immediate resistance is around the May 2024 high of $41. A break above $41 could push the price toward the cup resistance at $61. Furthermore, a break above $61 would confirm the bullish cup formation, potentially driving prices to new record levels. The 50 SMA crossing above the 200 SMA as the price nears the $41 resistance signals strong upward momentum.

AVAX 4-hour Chart – Bullish Pennant

The 4-hour chart for Avalanche shows the formation of a bullish pennant. The price has broken out of the pennant, initiating a strong upward move. Based on this bullish pattern, prices are likely to remain positive.