Ethereum Holds $3,000 But Is It Losing Against Solana?

Ethereum is still inside a range with caps at $3,300 and $2,800. As Solana takes over in transaction count, ETH risks plunging

Dalmas Ngetich•Monday, May 20, 2024•2 min read

Ethereum is stable and continues to move sideways in an overly bearish formation. Supporters are optimistic, expecting bulls to push prices above the local resistance levels for the uptrend of Q1 2024 to resume. Before then, sellers are still in control, at least looking at candlestick arrangement. As long as ETH is trending below $3,300, the path of least resistance is southwards, defined by the bear bars of mid-April 2024.

So far, Ethereum prices are firm, moving sideways. The coin is down 1% on the last day but up 5% in the previous week. Since bulls have failed to break free from the current consolidation, participation is muted. At just over $10 billion, there is an evident contraction that might change as liquidity flows throughout the week.

Ethereum daily chart for May 20

The following Ethereum news events are worth monitoring even as prices move sideways:

Through its CEO Larry Fink, BlackRock believes Ethereum will be the anchor of tokenization. The asset manager’s tokenized treasury fund on the legacy smart contract platform is the largest in the world. However, the approval of its spot ETH ETF application will be a game-changer. Multiple applicants are waiting for the United States SEC’s green light.
Solana recently processed over $91 million transactions in a day, outperforming Ethereum and some of its scaling platforms. Still, Ethereum remains the largest network by total value locked (TVL) and the ecosystem of protocols.

Ethereum Price Analysis

ETH/USD is moving sideways at spot rates.

Changing hands at around $3,070, prices remain boxed inside the $2,800 and $3,300 zone.

For the upside to pick up momentum there must be a conclusive close above $3,300. Ideally, this leg-up must be done with expanding volume. If this prints out, losses of April 13 would be reversed, a relief for optimistic bulls.

Conversely, if sellers of mid-April take over, ETH must slip below $2,800. In that event, the coin could plunge to register new Q2 2024 lows.