Supply on Ethereum exchanges hit multi-month lows, indicating significant accumulation. Solana price is falling as the bears threaten to drop below $163-$165. ZEC has fallen 25% in the past 24 hours after showing solid gains over the past few sessions.
Cryptocurrencies had a mixed performance on Tuesday, with most tokens losing momentum after yesterday’s rally.
The value of all digital tokens fell 2% in the past 24 hours to $3.51 trillion, while Bitcoin hovered at $104,340.
In this article, we will assess the current altcoin landscape by analyzing Ethereum, Solana, and Zcash.
Ethereum exchange supply hits record low
The second-largest cryptocurrency represents a bullish catalyst amid the overall market downturn.
CryptoQuant revealed that Ethereum volumes on Binance, the leading crypto exchange by volume, have continuously plummeted over the past few sessions and are currently at levels last seen in May of this year.
Exchanges’ ETH reserves peak in June and July and then steadily decline.
In particular, this trend is bullish as it points to a movement of assets into private or cold wallets, which reduces selling pressure.
CryptoQuant analysts added:
If the current trend of decreasing Ethereum supply on Binance continues, it could reduce the liquidity available for sale. This could support the possibility of prices stabilizing and potentially returning to an upward trend as the market’s risk appetite improves.
Therefore, Ethereum is poised for an impressive recovery once the overall market regains momentum.
The current whale activity shows that investors are confident that ETH is likely to rebound in the coming sessions.
ETH is trading at $3,544 after falling 1.75% in the past 24 hours.
Solana tests critical support
SOL was in the red in today’s trading after falling more than 3% from its value the previous day.
During this exposure period, the digital token has remained at $162, trading in a key support zone that could shape its trajectory in the coming sessions.
Crypto analyst @LordOfAlts highlights the visible uptrend line that SOL has tested several times and confirms solid support in the $163-$165 area.
Solana is trading just below this barrier, indicating significant weakness.
If bankruptcy is confirmed, it could cause an even sharper decline.
SOL’s next support zone is $155, below which it could enter the $150 psychological zone.
On the other hand, a recovery to $170 could change Solana’s short-term bias to bullish.
Zcash leads the downside
ZEC recorded the most bearish performance today.
The privacy cryptocurrency has lost more than 25% of its value as the hype fades amid profit taking.
ZEC is trading at $485, with daily trading volume up over 150%, perhaps highlighting increased activity by profit-taking.
Zcash has risen more than 275% in the last month, but could fall further as the bulls run dry.
If ZEC fails to stabilize above $488, it could fall further to $371, which is about a 23% drop from ZEC’s market price.
Meanwhile, broader market sentiment continues to influence altcoin trends.
Bitcoin, which sets the tone for the market amid uncertainty, is trading at $104,501.
Failure to sustain above $103,000 could trigger a fall to the psychological level of $100,000, which could trigger a rebound for buyers.
Due to increased selling pressure, Bitcoin price could fall to between $90,000 and $93,000.
