Prominent technical analyst John Bollinger, creator of the widely used Bollinger Bands indicator, has signaled that Ethereum (ETH) and Solana (SOL) are showing signs of a potential trend reversal. In a recent social media post, Bollinger noted that both digital assets appear to be forming a “W bottom,” a technical pattern that often precedes a move higher after a significant price decline.
His observation has captured the attention of the cryptocurrency market, especially given the recent downturns experienced by both ETH and SOL. Bollinger advised his followers that it might be “time to pay attention soon,” suggesting a critical juncture could be approaching for these two major altcoins.
Key Takeaways
- Legendary trader John Bollinger has identified a potential “W bottom” formation on the price charts for Ethereum (ETH) and Solana (SOL).
- The W bottom is a technical analysis pattern that typically indicates a potential reversal from a downtrend to an uptrend.
- Bollinger previously identified a similar pattern in Bitcoin in April 2025, which was followed by a price increase of over 50%.
- In contrast to ETH and SOL, Bollinger stated that Bitcoin is not currently exhibiting the same bullish reversal pattern.
- Both Ethereum and Solana have recently experienced significant price corrections, making this potential bottoming signal particularly noteworthy for investors.
Understanding the 'W Bottom' Reversal Pattern
The signal highlighted by John Bollinger is known in technical analysis as a “W bottom” or a double bottom. This pattern is a closely watched indicator because it can signal the end of a downtrend and the beginning of a sustained move upward.
A W bottom is characterized by several distinct phases:
- First Low: The asset's price hits a significant low point, marking the first trough of the “W.”
- Intermediate Peak: The price then bounces off this low to a temporary peak, forming the middle point of the letter.
- Second Low: The price declines again, forming a second trough that is typically at or near the level of the first low.
- Confirmation: The pattern is confirmed when the price breaks above the resistance level of the intermediate peak.
One of the key elements traders look for is trading volume. According to technical theory, the trading volume during the second low is often higher than during the first, indicating increased buying pressure and conviction from investors that the asset is undervalued.
Historical Precedent: Bollinger's Bitcoin Call
Bollinger's analysis carries significant weight due to his track record. In early April 2025, he pointed out a “classic W bottom” forming on the Bitcoin chart. Following his observation and the pattern's confirmation, Bitcoin's price rallied by more than 50%, demonstrating the potential predictive power of this formation.
Market Context for Ethereum and Solana
The potential for a reversal comes after a period of significant downward pressure on both Ethereum and Solana. The broader cryptocurrency market has faced several headwinds recently, contributing to the price declines.
Recent Performance of ETH and SOL
Ethereum, the second-largest cryptocurrency by market capitalization, has seen its value retreat from its all-time high. According to recent data, ETH is down approximately 21.3% from its record peak of $4,946, which was reached two months ago. This correction has tested the resolve of many investors.
Solana, a leading competitor in the smart contract platform space, has experienced an even steeper decline. The price of SOL has fallen by around 37% from its all-time high of $293.3, which was set back in January. This prolonged downturn makes Bollinger's analysis of a potential bottom particularly relevant.
Broader Market Pressures
The recent weakness in the crypto market was not isolated to ETH and SOL. The sell-off was initially triggered by an escalation in trade tensions between the United States and China, which created uncertainty across global financial markets. Furthermore, concerns about the stability of regional banks in the U.S., following disclosures of bad loans by institutions like Western Alliance and Zions Bancorp, added to investor anxiety and prompted a move away from riskier assets like cryptocurrencies.
Bollinger's Contrasting View on Bitcoin
While his outlook for Ethereum and Solana is optimistic, Bollinger's recent comments on Bitcoin were more cautious. In a notable contrast, he specifically stated that he did not see a potential W bottom forming for Bitcoin at this time.
“Gonna be time to pay attention soon, I think,” Bollinger stated in his post regarding ETH and SOL, while clarifying that the same conditions did not apply to Bitcoin.
This distinction is important because it suggests that the potential recovery may not be market-wide. Instead, it could signal a period where specific altcoins like Ethereum and Solana outperform Bitcoin. This phenomenon, often referred to as a decoupling, is closely watched by traders looking for opportunities outside of the market's largest asset.
What Investors Should Watch Next
While a signal from a respected analyst like John Bollinger is significant, the W bottom pattern is not yet confirmed for either Ethereum or Solana. For the reversal to be validated, several technical milestones must be achieved.
Investors and traders will be closely monitoring the price action of both cryptocurrencies. A decisive break above the intermediate resistance peak of the “W” formation, accompanied by strong trading volume, would be the primary confirmation signal. Until then, the pattern remains a potential setup rather than a guaranteed outcome.
If Bollinger's assessment proves correct and the patterns confirm, both ETH and SOL could be positioned for significant upside potential. However, the broader macroeconomic environment and any new market-moving events will continue to play a crucial role in the direction of the crypto market.
