Ahead of the launch of the Ethereum ETF, market sentiment is turning bearish while ETH price is showing signs of firming. Amid the growing bearish influence on the market, Solana (SOL) price failed to sustain the intermediate highs near $185 and dropped below $180. This has pushed the coin into a key support zone, which could lead to a prolonged bearish move and force it to test the critical zone below $175.
Will SOL price fall below $170 or bounce back and rise to $200?
Solana price formed a double bottom pattern and bottomed out near $120, triggering a significant upswing. However, the upside remained limited below $190, preventing the token from reaching $200. Hence, if bulls fail to sustain the $173 support, a rejection from the local resistance is expected to trigger another 10% pullback.
The daily chart of SOL price is flashing bearish signals as the coin faced rejection at key levels. Moreover, the MACD is also indicating a notable decline in buying pressure as the volumes have turned in favor of the bears. Secondly, the RSI has triggered a bearish divergence which could justify a major pullback and even drag the levels closer to $160.
Meanwhile, the possibility of such a bearish move remains unclear as the market prepares for the launch of the spot Ethereum ETF. Therefore, after reaching a local low near $172, just below $175, the bulls are expected to start a strong rebound again. This will raise the possibility of retaking the levels above $180 and possibly pushing the levels to $200. However, the next few hours are expected to be very important for Solana (SOL) price and the entire cryptocurrency market as it could trigger a boomerang effect and trigger a strong upside.
