Two of the top layer 1s in Ethereum (ETH) and Solana (SOL) have recently broken out of bull flags. How will this impact their prices going forward?
Total2 heading to $1.4 trillion
Source: TradingView
The first chart to look to see how altcoins are doing (minus $BTC) is the Total2 chart. A bull flag here gave a measured move for the combined market capitalization of the altcoins from $1.18 trillion, up to a target of $1.4 trillion.
The current dip in price could just be to retest support levels, and this could even take the price back down to the top of the bull flag and the $1.22 support level to confirm them before going higher.
$ETH bull flag target of $3,200
Source: TradingView
$ETH has been on a rampage since breaking out of the descending trendline that began in mid-December 2024. A strong surge took the price up to the substantial resistance level at $2,500, where the price calmed, shot higher, and then began to form a bull flag.
A short time later the price broke out again, but on Wednesday $ETH is coming back down, possibly to retest the bull flag, which also coincides with that $2,500 major support level.
If the bull flag does play out fully, the measured move would take the price to $3,200, which is another strong resistance level. $4,100 is the last swing high target.
$SOL bull flag measured move is to next major resistance ($202)
Source: TradingView
The $SOL price rallied up once it got above the $145 resistance level and flipped it into support. A bull flag formed and then broke out on Tuesday. However, the breakout has stalled on Wednesday, and the price has come down to test the important $180 level. If this is successful, and the level holds as support, the breakout surge can resume.
The measured move for the bull flag is up to $202, which happens to be the next major resistance level. The $SOL price is working its way through the resistance levels, and although the all-time high is still some way off, it could arguably be reached before the end of this bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.