Crypto Price Analysis 9-5: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, CARDANO: ADA, OPTIMISM: OP

The cryptocurrency market is back in the doldrums as major cryptocurrencies, except Bitcoin (BTC), traded in the red. However, BTC has struggled to break above the $112,000 mark in recent sessions as buyers failed to build momentum. The flagship cryptocurrency fell to an intraday low of $109,432 late on Thursday but rebounded from this level to reclaim $111,000. BTC is currently trading around $111,370, marginally up over the past 24 hours. 

Meanwhile, Ethereum (ETH) continued dropping, falling from $4,428 to a low of $4,270. However, it has rebounded from this level to reclaim $4,300 and move to its current level of $4,331, down nearly 2%. Ripple (XRP) is also trading in the red, down almost, while Solana (SOL) is down 1.30%, trading around $204. Dogecoin (DOGE) is down 0.66% and Cardano (ADA) is marginally down, trading around $0.818. Chainlink (LINK), Stellar (XLM), Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) also registered substantial losses. 

US Stocks Open Flat 

US stocks traded flat in early exchanges on Thursday as Wall Street assessed the latest job data, which showed a drop in private payroll growth. The benchmark S&P 500 index was up 0.1%, while the Nasdaq Composite gained 0.2%. The Dow Jones Industrial Average flipped to green after futures dipped, putting renewed pressure on the bulls on Thursday. However, the index flattened out as the markets analyzed the August private payrolls data. The August private payrolls report showed an increase of only 54,000 jobs, compared to predictions of 75,000 jobs. 

According to analysts, the numbers show a substantial decline from the revised figure of 106,000 in July. Nela Richardson, chief economist at data firm ADP, stated, 

“The year started with strong job growth, but that momentum has been whipsawed by uncertainty.”

Grayscale Launches The ETCO Fund 

Grayscale Investments has announced the launch of the Grayscale Ethereum Covered Call ETF on the NYSE Arca. The fund will trade under the ETCO ticker and will not actively hold ETH. Instead, the ETF will utilize a strategy of writing or selling call options on Ethereum ETFs, targeting the asset manager’s Grayscale Ethereum Trust ETHE and Grayscale Ethereum Mini Trust ETH. 

The primary goal of the ETF is to generate an income from the premiums collected from these options, with distributions to shareholders on a bi-weekly basis. The new fund will join Grayscale’s existing income-focused lineup, which includes a Bitcoin covered call ETF. 

Grayscale is focusing on broadening its footprint in yield-oriented strategies. The firm has positioned the new ETF around ETH, being the world’s second-largest cryptocurrency by market capitalization. Grayscale stated that it is targeting investors who want to complement their existing ETF exposure with an income component. Krista Lynch, Senior Vice President, ETF Capital Markets at Grayscale, stated, 

“We know that investors are all unique with different needs and investment goals, and we’re excited to introduce this new ETF as part of our commitment to providing innovative, outcome-oriented solutions that meet them where they are.”

“Avoidable Errors” Led To Gary Gensler’s Texts Getting Wiped 

An investigation by the United States Securities and Exchange Commission (SEC) into missing text messages from former Chair Gary Gensler has concluded that “avoidable errors” led to the messages getting lost. The SEC Office of Inspector General (OIG) investigated missing text messages from Gensler’s phone between October 2022 and September 2023. The messages were permanently lost during the height of the agency’s campaign against crypto. In its report, the OIG stated that the SEC’s IT Department initiated a poorly understood and automated policy, which resulted in an enterprise wipe of Gensler’s government-issued mobile device. 

Poor change management, a lack of proper backups, ignored system alerts, and software flaws worsened the loss. According to the OIG, some of the lost texts contained SEC enforcement action against cryptocurrency companies and their founders. This means that critical communication about how the SEC pursued cases against crypto companies may never be known. 

SEC Proposes Crypto Safe Harbors, Broker-Dealer Reforms 

United States Securities and Exchange Commission Chair Paul Atkins has proposed rules that could alter how the regulator handles digital assets. The SEC released around 20 proposed rules on Thursday as part of its spring 2025 agenda. While each proposal impacts the industry differently, market watchers believe the regulator would continue to soften its approach to the digital asset sector by establishing safe harbors and restructuring existing regulations. Atkins stated, 

“The agenda covers potential rule proposals related to the offer and sale of crypto assets to help clarify the regulatory framework for crypto assets and provide greater certainty to the market.”

The proposed rules include specific exemptions and safe harbors related to the offering and sale of crypto assets. They also propose amending the Exchange Act to account for the trading of digital assets on national exchanges and alternative trading systems. The changes could allow cryptocurrency companies to operate with less regulatory oversight, reducing the risk of legal action. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has rebounded during the ongoing session, with the price up nearly 2%. The flagship cryptocurrency recovered well during the week, briefly crossing the $112,000 mark on Wednesday to reach an intraday high of $112,600. However, it could not stay at this level and settled at $111,756, ultimately registering a 0.46% increase. Selling pressure returned on Thursday as BTC fell to an intraday low of $109,321 before settling at $110,720. BTC has rebounded during the ongoing session and is trading around $112,982. 

BTC’s decline below $110,000 on Thursday suggests that weakness remains. Although the flagship cryptocurrency has crossed $112,000 during the ongoing session, it remains to be seen if it can close above this level. BTC bulls failed to flip $112,000 into support on Wednesday and Thursday despite unemployment figures showing a weak labor market. Popular crypto trader BitBull stated in a post on X, 

“$BTC got rejected from its major resistance level. Until the $114K level is reclaimed on the daily timeframe, every BTC move will just be a bull trap. Also, the longer it'll take BTC to reclaim $114,000 level, the higher the chances of a big correction before reversal.”

Many analysts believe a retest of the $100,000 support is a possibility in the short term. However, market insight company Swissblock was more optimistic, flagging $110,000 as a key support level. The company also stated that resistance was thinning, and a move to $115,000 could be a possibility. Swissblock stated on X, 

“Bitcoin is breaking out from the critical zone: a straight slide to $100K was never the base case. The wall resisted until now. Above, there is the $113,600–$115,600 gate. After a pullback, price needs fresh momentum to clear it, then contend with heavy resistance into $118K.”

However, one analyst has predicted that BTC could crash to $50,000 next year. According to analyst Joao Wedson, the market is closing in on its four-year cycle and could turn bearish, triggering a crash to $50,000. A bear market is a possibility if the four-year cycle theory is still valid. Wedson stated, 

“Of course, it would be reckless to assume that Bitcoin has only a little over one month left in this cycle based solely on this chart. Still, I can’t help but think — this could be just enough time for BTC to dip toward the $100K range before rocketing past $140K within the same period. Who would dare to doubt that scenario?”

BTC registered a sharp drop on Sunday (August 24), falling to an intraday low of $110,635 before settling at $113,478. Bearish sentiment intensified on Monday as the price fell nearly 3% and settled at $110,127. BTC faced volatility on Tuesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose 1.51% to $111,788. BTC was back in the red on Wednesday, dropping 0.48% and settling at $111,253. It recovered on Thursday, rising 1.19% to reach an intraday high of $113,480 before settling at $112,574. Bearish sentiment returned on Friday as BTC fell nearly 4%, losing the crucial $110,000 level and settling at $108,378.

Source: TradingView

Price action was mixed over the weekend as BTC rose 0.41% on Saturday before dropping 0.53% on Sunday to settle at $108,247. The flagship cryptocurrency started the current week in positive territory, rising 0.92% to reclaim $109,000 and settle at $109,240. Bullish sentiment intensified on Tuesday as the price rose nearly 2% to cross $111,000 and settle at $111,247. BTC continued pushing higher on Wednesday, rising 0.46% to $111,756. BTC lost momentum on Thursday, falling to an intraday low of $109,321 before settling at $110,720. The price has recovered during the ongoing session, rising nearly 2% and trading around $112,795. 

Ethereum (ETH) Price Analysis 

Ethereum (ETH) has made a healthy recovery during the ongoing session, with the price up over 2%. Price action has been mixed in recent sessions, with the altcoin rising almost 3% on Wednesday. However, it failed to reclaim the $4,500 level and dropped 3.49% on Thursday, settling at $4,928. The current session sees ETH trading around $4,400, with buyers expected to retest the $4,500 level. 

Despite the recovery, ETH has declined by over 3% in the past week as Ethereum ETFs continue to register outflows. September’s weak seasonality also impacted investor sentiment. Vikram Subburaj, CEO of Giottus, stated, 

“Ethereum slipped ~3% to hover near $4,300 amid continued ETF outflows and September’s weak seasonality.”

Institutional interest in ETH remains high, and whale activity has also registered a sharp uptick as investors rotate their capital from BTC to ETH. ETH exchange reserves have fallen to a three-year low, which analysts believe could lead to a supply shock and reduce sell-side pressure. If the altcoin can reclaim and close above the $4,500 level, it could move towards the $4,800-$5,000 zone. Edul Patel, CEO of Mudrex, stated, 

“If ETH manages to secure a daily close above $4,500, a move towards the external liquidity zone between $4,800 and $5,000 is likely, pushing ETH even further, while strong support forms above $4,300.”

For now, ETH is trading in a narrow range between $4,200 and $4,500, indicating indecisiveness among traders. While price action may be muted, institutions are continuing to accumulate the asset. Ethereum’s ETH staking queue has raced to its highest level since 2023 as institutional traders and crypto treasury firms target rewards for their holdings. The Ethereum staking queue reached its highest level since September 2023 on Tuesday. On-chain data showed 860,369 ETH, valued at $3.7 billion, waiting to be staked. 

ETH registered a sharp drop on Monday (August 25), dropping over 8% to $4,380. It recovered on Tuesday, rising over 5% to reclaim $4,600 and settle at $4,603. However, selling pressure returned on Wednesday as the price fell by over 2% to $4,509. ETH registered a marginal increase on Thursday before dropping over 3% on Friday and settling at $4,362. Price action remained positive over the weekend as ETH registered marginal increases on Saturday and Sunday, settling at $4,394.

Source: TradingView

ETH started the current week in the red, dropping nearly 2% and settling at $4,315. The price recovered on Tuesday and registered a marginal increase, moving to $4,327. Bullish sentiment intensified on Wednesday as ETH rose nearly 3% to cross $4,400 and settle at $4,453 after reaching an intraday high of $4,492. The price was back in the red on Thursday, dropping 3.49% to $4,298. The current session sees ETH up over 2%, trading around $4,400. Buyers will look to retain control and push ETH back towards $4,500.

Solana (SOL) Price Analysis

Solana (SOL) has rebounded during the ongoing session, continuing its impressive performance. The altcoin faced substantial selling pressure on Thursday and fell by over 4%. However, it held its position above $200 to recover during the current session. SOL has outperformed the likes of BTC and ETH. Overall market sentiment remains neutral with the crypto “Fear and Greed Index” at 51.

SOL’s recent price action can be attributed to positive developments on its network. Solana’s community has almost unanimously voted in favor of the upcoming Alpenglow update. The update promises to boost network speeds, finalizing blocks in milliseconds. SOL’s push above $210 took the altcoin to an intraday high of $218 on Friday. However, sellers took over and dragged the price below $200 by Monday. SOL’s RSI currently sits at 53, indicating that underlying buying interest is absorbing selling pressure. Analysts interpret this as accumulation during weak market phases, which is pushing prices higher despite several indicators flashing red.

Despite recent weakness, analysts remain bullish about SOL’s long-term prospects. According to analysts, the altcoin’s performance has painted a bullish megaphone pattern on the weekly chart, which could push it towards $1,000 or higher. A megaphone or broadening wedge pattern forms when the price creates a series of higher highs and lower lows. A breakout above the pattern's upper boundary could trigger a parabolic price rise. The bullish pattern will be confirmed if SOL breaks above the $300-$350 zone.

SOL ended the previous weekend in positive territory, rising 1.73% on Saturday and 0.93% on Sunday to settle at $206. Despite the positive sentiment, SOL registered a sharp drop on Monday, falling over 9% from $200 to $187. SOL recovered on Tuesday, rising nearly 5% and settling at $195. Bullish sentiment persisted on Wednesday as the price surged to an intraday high of $212 before losing momentum and settling at $203, ultimately rising 3.62%. SOL continued pushing higher on Thursday, rising nearly 6% to $214. Despite the positive sentiment, the price was back in the red on Friday, dropping over 4% to $205.

Source: TradingView

Price action remained bearish over the weekend as SOL fell 1.17% on Saturday and 0.99% on Sunday, settling at $200. Sellers retained control on Monday, dropping nearly 2%, slipping below $200 to settle at $197. Bullish sentiment returned on Tuesday as SOL rallied, rising over 6% to reclaim $200 and settle at $209. Buyers retained control on Wednesday as the price rose 0.61% to settle at $210. Despite the positive sentiment, SOL was back in the red on Thursday, dropping over 4% to $202. The price has recovered during the ongoing session, rising almost 2% and trading around $205.

Cardano (ADA) Price Analysis

Cardano (ADA) registered a sharp drop on Monday (August 25), dropping nearly 8% and settling at $0.839. Despite the selling pressure, the price recovered on Tuesday, rising 3.34% to $0.867. Selling pressure returned on Wednesday as the price fell 1.96% and settled at $0.850. ADA reached an intraday high of $0.880 on Thursday. However, it could not stay at this level and settled at $0.859, ultimately rising 1.06%. Sellers returned to the market on Friday as ADA lost momentum. As a result, the price fell nearly 4% and settled at $0.859.

Source: TradingView

Price action remained bearish over the weekend as ADA fell 0.48% on Saturday and 1.34% on Sunday, settling at $0.812. The price faced volatility on Monday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as momentum waned after ADA reached an intraday high of $0.845. As a result, the price fell 1.35% to $0.801. Bullish sentiment returned on Tuesday as ADA rallied, rising over 4% to settle at $0.836. The price registered a marginal increase on Wednesday but was back in the red on Thursday, dropping over 3% to $0.809. The current session sees ADA up 2.47%, trading around $0.829.

Optimism (OP) Price Analysis

Optimism (OP) started the previous week in the red, dropping over 11% to $0.688. Despite the overwhelming selling pressure, the price recovered 2.51% on Tuesday. OP lost momentum on Wednesday, falling 1.39% but returned to positive territory on Thursday, rising nearly 6% to cross $0.70 and settle at $0.737. Selling pressure returned on Friday as the price fell almost 6% and settled at $0.694.

Source: TradingView

Price action was mixed over the weekend as OP rose 1.87% on Saturday before dropping over 2% on Sunday to settle at $0.692. OP faced volatility on Monday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 2.62% to $0.674. Bullish sentiment returned on Tuesday as OP rose 5.43% and settled at $0.710. The price continued pushing higher on Wednesday, rising 1.10% to $0.718. Despite the positive sentiment, OP lost momentum on Thursday, dropping almost 4% to $0.691. OP is up over 3% during the current session, trading around $0.713.

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.