Crypto Markets Stall Ahead of Fed as Bitcoin, Solana, and Ether Face Key Technical Tests
Major cryptocurrencies are showing hesitation ahead of Wednesday’s Federal Reserve decision, with Bitcoin, Solana, and Ether all struggling to break through critical resistance levels.
Bitcoin Meets Familiar Roadblock
Bitcoin (BTC) has once again failed to clear the $116,000 level, a resistance zone in place since July and highlighted by CoinDesk as a major hurdle to the $120,000 target. After rebounding from lows of $107,200 last week, the rally has repeatedly stalled just below this ceiling.
That barrier aligns with a trendline drawn from the December 2017 and November 2021 cycle highs — a technical level that capped upside attempts in July and August. Analysts warn that a third failed breakout could hand control to bears, potentially sparking a deeper retracement, even as expectations of a Fed rate cut provide a bullish backdrop.
Traders are closely monitoring the Ichimoku cloud on daily charts. BTC is currently trading within the cloud, signaling indecision. A decisive move above or below could determine the next major direction.
Solana Flashes ‘Shooting Star’ Signal
Solana (SOL) has raised caution flags despite strong sentiment around its ecosystem. On Sunday, the token printed a “shooting star” candlestick after spiking to nearly $250 before retreating sharply by session close.
The bearish formation — where buyers push prices higher but sellers reclaim control — was reinforced on Monday as SOL dropped toward $230. For bulls to regain momentum, the token must reclaim $250; otherwise, downside risks increase, particularly if the Fed strikes a hawkish tone.
Ether Consolidates in Tight Range
Ether (ETH) has shifted into consolidation mode after hitting an all-time high near $5,000 last month. Price action has narrowed into a symmetrical triangle pattern, which often precedes sharp breakouts in either direction.
With ETH trading sideways, analysts expect a clearer trend to emerge once the range resolves. Until then, both bulls and bears remain on the sidelines.
Outlook
With key tokens testing resistance zones and technical signals flashing caution, the Fed’s upcoming rate decision could act as the catalyst for the next major move across crypto markets.
