The altcoin market experienced a notable 6% gain last week, though the start of this week has seen a more cautious approach from investors as they await upcoming signals regarding the Federal Reserve’s interest rate outlook. Currently, Bitcoin is stabilizing around the $115,000 level, attracting traders’ attention as they look for cues on monetary policy shifts. A dovish message from the Fed could potentially elevate risk appetite, encouraging an influx of funds back into altcoins.
The total market cap for altcoins, excluding Bitcoin, is on an upward trajectory and is nearing record levels. If large-cap altcoins succeed in breaking through key resistance points, a rally could be expected as the year concludes. With Ethereum’s market share inching up to 15% recently, it remains a focal point for traders. Last week, Ethereum saw an almost 20% increase and is currently testing a significant psychological resistance level.
However, Ethereum has shown signs of losing momentum in recent days, moving sideways within a broader uptrend. The $4,300 level remains a vital support point. Although there was a bounce from this support zone, it lacked the strong trading volume necessary for significant upward movement. The Stochastic RSI indicator reached overbought territory quickly before retreating, indicating a weakness in buying pressure.
In terms of immediate targets, should Ethereum hold at $4,450 to $4,500, it may create a foundation for further moves higher. If buying interest intensifies, initial resistance is expected at the $4,600 level, followed by further challenges near $4,950 and the crucial $5,000 mark. Having recently approached the $5,000 region, a new peak in the $5,450 to $5,500 range is conceivable if the market’s risk appetite improves.
Conversely, if the downward trend persists and Bitcoin falls below $4,300, it could signify the end of the current uptrend, leading to a correction toward the $3,500 mark. Thus, the $4,300 support remains a pivotal threshold, while sustained movement above $4,600 is essential for renewed upward momentum.
In the case of AVAX, it broke past the $25 resistance level last week, marking a significant milestone by quickly reaching $30 with a surge in volume. This move comes after a long-term downtrend that lasted until March 2024. The $30 mark corresponds with the 0.382 Fibonacci retracement level, making it a key threshold for continuing the uptrend. A favorable shift in market risk appetite following the Fed’s decision could help AVAX close above this level for the week.
If successful, short-term price targets would include $35, $40, and $45. However, the recent surge has put AVAX in overbought territory, which could increase the risk of a pullback. A failure to break above $30 might prompt profit-taking, pushing AVAX back toward $27 and potentially revisiting the $25 level.
Meanwhile, SUI has shown an upward trajectory since April but has experienced significant pullbacks. The $4.10-$4.35 range has proven to be a stubborn resistance. Nonetheless, the overall uptrend remains intact. Following the last correction that found support at $3.20, SUI managed to rise to $3.80, though it has lost momentum again. The $3.45 level has become crucial; if SUI can maintain its position above this support, the next target may be the $3.90 mark. Daily closings above $3.90 could trigger another attempt to breach the $4.35 level and potentially open the door to the $5 area.
Should corrective pressures escalate, the $3.30 level may serve as intermediate support beneath $3.45. A breakout below this level could drive prices towards $3.00 and eventually $2.85. In summary, SUI retains bullish potential as long as it remains above its daily trendline.
InvestingPro continues to offer a comprehensive suite of tools to help investors navigate the complexities of the market, including AI-managed strategies, extensive historical data, and insights into the positions held by prominent investors and hedge funds. This suite aims to assist thousands of investors in exceeding market performance consistently.
