Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Legendary trader John Bollinger, creator of the widely used “Bollinger Bands” indicator, has signaled that Ethereum (ETH) and Solana (SOL) are potentially forming “W” bottoms, a pattern often indicative of a significant trend reversal. Bollinger suggested it’s “time to pay attention soon,” hinting at potential upside for both altcoins after recent market downturns.
Understanding the “W” Bottom
A “W” bottom is a bullish chart pattern that typically appears after a substantial downtrend, signaling a potential shift to an upward trajectory. This formation is characterized by two distinct lows, resembling the base points of the letter “W,” separated by an interim peak. Crucially, the second low often occurs with substantially higher trading volume, indicating robust buying interest and a strong foundation for a reversal.
Bollinger’s Track Record
Bollinger has a history of accurately identifying such patterns; in early April, he noted a classic “W” bottom forming on Bitcoin’s chart, which preceded a rally of over 50%. However, his most recent assessment for Bitcoin indicated no such pattern, suggesting a different outlook for the flagship cryptocurrency compared to ETH and SOL.
Recent Market Context for ETH and SOL
Both Ethereum and Solana have experienced significant losses this month, caught in a broader crypto market downturn. This crash was primarily triggered by an escalation in trade tensions between the US and China, alongside renewed concerns about the health of regional banks. Ethereum is currently down 21.3% from its record peak of $4,946 achieved two months prior, while Solana has plunged 37% from its all-time high of $293.3 logged in January.
Outlook
If Bollinger’s current assessment proves accurate, the formation of “W” bottoms could signal that both ETH and SOL are poised for a rebound. This development would mark a crucial turning point for these major altcoins, potentially setting the stage for a period of recovery and further upside.
