Ethereum drops 5.6% to $2,558, analysts eye $2,500 as Solana hovers near $114 support

Ethereum (ETH) experienced a sharp decline over the past 24 hours, falling 5.6% to $2,558.66, according to CoinGecko. The cryptocurrency’s seven-day losses reached 5.86%, with daily trading volume standing at approximately $18.76 billion.

Analysts watch key ETH support levels

Market analyst Ali Charts noted that ETH broke below its established price channel, positioning $2,540 and $2,500 as the next key support zones. A further slide to $2,500 could increase downward pressure across altcoins.

Ali Charts questioned whether ETH is leading the current market correction, with major projects like Solana potentially tracking its moves. He highlighted the importance of the $2,500 level if ETH’s weakness continues.

ETH broke below its channel support first, putting $2,540 and $2,500 as visible downside levels. Whether Solana follows ETH’s move lower depends largely on whether Ethereum can hold above these new support zones.

Trader Crypto Patel identified $2,562 as a decision point for ETH. If the daily close falls below this level, Patel does not plan to enter new positions and will monitor the next higher low. The trader has outlined an accumulation zone between $2,053 and $1,868, where several technical indicators—such as the 0.5 to 0.618 Fibonacci retracement, a fair value gap, and a bullish order block—overlap.

The fair value gap indicates an area where price changed too rapidly for buy and sell orders to fill, while an order block marks a region where substantial institutional buying previously occured.

Patel emphasized that he would consider accumulation only after confirmation of a bullish market structure shift at those levels, indicating a clear return of buyer interest. The trader also watches the 0.786 Fibonacci level near $1,717 for potential sharp liquidity moves, but maintains that long-term upside targets of $5,000 and $10,000 remain speculative rather than supported by current data.

Mini dictionary: Fair value gap – A price region on the chart where the asset moved rapidly, leaving little buy or sell orders behind, often seen as an area to watch for possible price reversals.

Solana maintains support amid market weakness

Solana (SOL) traded at $115.85, down 4.14% on the day and 4.66% for the week, with a daily volume of $3.10 billion. According to CoinGecko, SOL remains above the first support level at $114 after briefly losing traction at the $120 area.

Ali Charts pointed to $114 as the initial downside target for Solana in the case of continued selling. Should SOL lose $114 decisively, the analyst pointed to $110 as the next area at risk. However, a recovery and close above $120 could weaken the bearish setup for SOL.

Trader Wealthmanager analyzed Solana on a lower-timeframe basis, noting that while SOL holds the lower end of its trading range near $117.70, momentum has faded. A descending trendline on Binance’s charts from recent highs signaled weakness among buyers.

As RSI continues to form lower highs while price remains steady, buyers appear to be losing control. A break out of the current range will likely determine the next major direction for $SOL, according to the trader’s four-hour chart analysis.

The relative setup between ETH and SOL stands out. While ETH has recorded a sharper breakdown, SOL continues to hold just above key support. Analysts suggested that if ETH continues to fall past $2,562 and $2,500, SOL could lag and then see accelerated losses should $114 fail.

Solana’s substantial 24-hour trading volume and its position just above major technical support keep the focus on its short-term price action. Current analyst levels are guideposts, rather than predictions.