Crypto Market Drops After Musk-Trump Conflict; ETH and SOL Under Pressure as Volatility Rises
The cryptocurrency market is experiencing heightened volatility following a public dispute between Elon Musk and Donald Trump, which has led to a decline in key altcoins such as Ethereum (ETH) and Solana (SOL). Ethereum recently rebounded by 45% but now faces strong resistance at $2,820, with several bearish signals including negative Awesome Oscillator readings, a bearish MACD crossover, and Supertrend resistance. Significant exchange inflows—over 93,000 ETH valued at approximately $230 million—suggest notable profit-taking or impending selloffs. If ETH breaks its $2,280 support, a drop below $2,000 is possible, increasing downside risk. Solana experienced an intraday flash crash of 8.1%, plummeting from $154.48 to $141.75 before bouncing back to about $147.40. This volatility was accompanied by high trading volume, with buyers supporting the $142 level, but resistance around $150–$152 remains strong. Additionally, the launch of the Solana-based Layer 2 project SOLX has attracted attention, raising over $44 million and offering high staking returns. Over 3.48 billion SOLX tokens have been locked, which may help stabilize its price. Overall, crypto sentiment remains negative in the short term due to increased uncertainty and social media tensions. Traders are advised to monitor critical support and resistance levels on ETH and SOL as market direction remains unclear, while specific projects like SOLX attract speculative interest despite broader market weakness.
Bearish
Multiple bearish technical indicators for Ethereum, such as a negative Awesome Oscillator, bearish MACD crossover, and mounting resistance, point to potential further declines, especially if the $2,280 support fails. Solana’s rapid price drop and partial recovery show instability but not a confirmed reversal. The influx of ETH to exchanges and negative market sentiment indicate rising sell pressure, exacerbated by broader uncertainty from high-profile social media disputes. While new projects like SOLX may attract speculative capital and help stabilize specific tokens, the dominant mood for leading altcoins stays negative in the short term. Thus, the overall short-term outlook for ETH and SOL is bearish.