Ethereum, Solana, Cardano Help Send Crypto Markets to Record $4.2 Trillion: Analysis

Crypto degens today woke up with smiles on their faces.

The cryptocurrency market is rallying again, with total market capitalization climbing to an unprecedented $4.2 trillion, according to data from CoinGecko. That’s a 3% jump in just the last 24 hours and a new record high for crypto.

Naturally, trading volume exploded, climbing 25.73% to $239.35 billion, signaling renewed investor appetite across the board. Even Monero, which tanked yesterday on fears of a 51% network attack, is in the green today.

Bitcoin is, as usual, leading the way, once again rising above $120,000. But it’s altcoins stealing the show today. The Altcoin Season Index on CoinMarketCap has risen to 39, up from 29 last month, which suggests an early-stage rotation into alternative cryptocurrencies as Bitcoin dominance wanes. What are traders rotating into you ask? Within the top 10, it’s Ethereum, Solana, and Cardano showing strong signals.

Ethereum (ETH) price: Testing all-time high

Ethereum, which had previously lost a great deal of momentum following its 2021 peak, is now back in the spotlight as the “public company crypto treasury” craze spreads to ETH.

Massive buys from publicly traded companies like the Consensys-linked Sharplink and Tom Lee’s BitMine have buoyed Ethereum prices. ETH is up a whopping 6% today, just shy of its 2021 all-time high above $4,800.

On Myriad—a prediction market developed by Decrypt’s parent company Dastan—predictors are confident that ETH has the strength to top $5K this year. Just last week, the odds were even, but sentiment on Myriad has flipped resoundingly bullish. Users are now placing the odds at 87% that Ethereum hits $5,000 before the end of the year.

A separate market on Myriad shows traders are widely expecting ETH to hit $5K before dipping all the way back down to $3,500 this year, placing those odds at nearly 80%.

Do the charts agree? At the moment, the second-largest cryptocurrency by market cap is demonstrating remarkable strength across multiple technical indicators.

The Average Directional Index, or ADX, for ETH is at 46, which confirms an exceptionally strong uptrend. ADX measures trend strength on a scale from 0 to 100, where readings above 25 indicate a confirmed trend, and above 40 signals powerful directional momentum. At 46, ETH’s uptrend has serious conviction.

Ethereum’s exponential moving averages also paint a bullish picture. EMAs take the average price of an asset over a set period of time. ETH’s 50-day and 200-day EMAs are currently providing dynamic support well below current prices. This expanding gap between short and long-term moving averages, known as bullish divergence, typically occurs in strong uptrends and gives buyers multiple support levels during any pullbacks. Traders see this setup as a green light for trend-following strategies, and the bigger the spike gets, the more momentum the trend has.

The Relative Strength Index, or RSI, for ETH is at 79, pushing into overbought territory above 70. That normally triggers caution among traders. But during powerful bull runs, assets can remain overbought for extended periods. This reading suggests short-term profit-taking might emerge without posing an immediate threat to the overall momentum.

Key Levels:

• Immediate support: $4,500 (psychological level)
• Strong support: $3,750 (previous resistance turned support)
• Immediate resistance: $4,878 (all-time high)
• Strong resistance: $5,000 (major psychological barrier, price discovery zone)

Solana (SOL) price: Time to shine?

And not one to be left out, Solana is turning heads today as well. SOL is up 7% over the past 24 hours, testing the psychologically significant price point of $200.

The “Ethereum killer,” as some of its proponents refer to it, is showing strong technical signals that suggest further upside, potentially breaking from the sideways-trading pattern it’s held since its dip in March.

This recent spike has increased the optimism among Myriad traders as well. On Myriad, the odds of Solana hitting a new all-time high above $293 this year have jumped from 30% last week to 50% today. That 20% swing is indicative of the sentiment across the broader market as SOL looks to keep pace with the gains of its biggest competitor in ETH.

And the price data supports the bullish outlook.

Solana’s ADX is now at 23, approaching the crucial 25 threshold that confirms an established trend. Rising ADX during upward price moves validates the trend’s legitimacy. Traders often watch this level closely, since crossing above an ADX of 25 usually marks a transition from choppy trading to sustained trend. With momentum building, SOL could become an appealing trade to those watching the charts.

The EMA configuration supports the bullish view, with the 50-day EMA providing support around $170 while price action trades comfortably above both moving averages. This positive alignment typically indicates sustained buying pressure, with the gap between price and EMAs providing a cushion for any short-term pullbacks.

The coin entered a golden cross formation in mid-July, but the gap between the two moving averages is still small, which means there is not really enough momentum for big price swings in either direction going too far from the averages.

RSI at 64 sits in what traders call the “power zone”—strong enough to indicate genuine momentum but not yet extended enough to trigger automatic profit-taking. Judging by this indicator alone, there is space for approximately 10-15% additional upside potential before overbought conditions emerge. Of course, this doesn’t mean that will happen, but a technical analysis of the charts would suggest such a price movement would still be healthy and expected.

Key Levels:

• Immediate support: $189 (recent consolidation zone)
• Strong support: $170 (50-day EMA area)
• Immediate resistance: $200 (psychological barrier)
• Strong resistance: $220 (technical target from measured move)

Cardano (ADA) price: Testing resistance

Cardano is showing impressive strength with the ADA token currently trading at $0.868, up 3.09% and actively testing the resistance level marked by the green dotted line on the chart below at around $0.87-$0.90.

This critical level has capped at least three previous rallies, making the current test particularly significant for momentum traders.

The ADX reading at 24 is just below the 25 trend confirmation threshold, suggesting ADA is on the verge of establishing a strong directional move. When ADX crosses above 25, it typically signals the end of consolidation and the beginning of trending behavior—a setup that has traders paying close attention.

However, a weak ADX near a strong resistance is usually not what traders like to see.

The 50-200 EMA spread remains positive with both averages providing support below current prices. The 50-day EMA near $0.75 acts as immediate dynamic support, while the 200-day provides a floor around $0.70. This stacked configuration gives bulls confidence that any pullbacks will find buyers at multiple levels, but there is not really enough of a gap between the two timeframes to notice any strong bullish (or bearish) trend.

RSI at 65 indicates healthy bullish momentum without being overextended. This reading leaves room for continued gains—altcoins can reach very high readings during strong uptrends. The current level suggests the rally has fuel left in the tank, particularly if the resistance break is confirmed.

Overall, indicators point to bullish behavior, however, the readings say this trend is weak. Not bearish, but very prone to corrections along the way.

The resistance near $0.9-$1 will be crucial for the price trend. When it failed to break past that timeline, the coin had a similarly bullish reading.

Key Levels:

• Immediate support: $0.83 (recent breakout level)
• Strong support: $0.75 (50-day EMA zone)
• Immediate resistance: $0.90 (green dotted line – current test)
• Next resistance: $1.00 (major psychological target)