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Ethereum is in an upward price channel, which could dictate its performance in the short term. This technical formation suggests a cautiously optimistic outlook, but also hints at potential risks ahead.
The ascending channel observed on Ethereum's daily price chart indicates that ETH is achieving higher lows and higher highs, which is a bullish indicator in traditional market analysis. However, the current position is near the lower end of the channel near $3,000, raising concerns about a possible acceleration of the breakdown. If Ethereum fails to sustain this level, we could see a correction towards the $2,700 level, which would mean a significant change in market sentiment and momentum.
This potential drop to $2,700 is very important as it coincides with the 200 EMA and could serve as a foundation for ETH to stabilize and potentially recover. However, if ETH maintains its trajectory within the ascending channel, the immediate resistance will be around $3,300. If this level can be overcome, it could pave the way for Ethereum to approach the top of the channel near $3,500, which could strengthen bullish sentiment and create further buying pressure.
Whether Ethereum rises to test new resistance or faces a downward correction will largely depend on Bitcoin's recovery and consistent market inflows, which are currently non-existent.
Shiba Inu volatility decreases
The Shiba Inu exhibits mild instability, which may be preparing it for an unexpected rise. While there is a general lack of strong price action, which usually discourages retail investors looking for quick profits, SHIB's recent trading patterns suggest a potential change in dynamics.
Memecoin, known for its vibrant community and explosive growth phase, is currently undergoing a consolidation phase that could portend major price movements. Although recent trading volumes have not shown a dramatic spike, the gradual increase in buying activity suggests that investors are accumulating positions, perhaps in anticipation of future price increases. .
Currently, SHIB is hovering around a key support level around $0.00002272. If this level is maintained, it will set a strong foundation for the token. However, below this support, SHIB could test further lows around $0.000017.
On the upside, if SHIB can gain enough momentum to overcome the current market downturn, the first major resistance lies near $0.00002690. If this barrier can be overcome, the bullish sentiment could be validated and lead to a test of the next resistance near $0.00002960. Such a move would not only confirm a reversal, but could also reignite interest among retail investors who like volatility and dynamic price movements.
The current market situation for SHIB, characterized by relative stability and increasing purchase volumes, could indeed set the stage for a surprising turnaround.
Bitcoin’s potential fuel
Bitcoin and Ethereum spot ETFs have started trading in Hong Kong. This opens new avenues for both local and non-local investors that meet stringent regulatory requirements, including comprehensive customer due diligence. The introduction of these ETFs is seen as a significant step forward in the mainstream financial adoption of cryptocurrencies and could potentially act as a catalyst for Bitcoin price movements.
Currently, Bitcoin is showing a flat trend in the market, with decreasing trading volumes, indicating a period of consolidation. Nevertheless, the launch of an ETF could introduce new liquidity, attract institutional investors, and boost Bitcoin market activity.
From a technical perspective, Bitcoin is trading in a narrow range, with immediate resistance near $63,000. This level has been acting as a strong resistance point in recent weeks. On the downside, support near $59,988 is important to prevent further decline.
If Bitcoin can break above this threshold, the next major resistance level will be around $65,000. A sustained move above this level would confirm the return of the bullish trend and could push Bitcoin towards a higher price range in the near future.
About the author
Armand Sirignan
