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The latest news regarding the possible approval of Ethereum ETF has sent the market towards strong bullishness. This surge resulted in over $260 million in liquidations and pushed Ethereum above $3,600, potentially paving the way for $4,000.
Ethereum's explosive growth can be attributed to the expected ETF approval, which has reinvigorated investor confidence and propelled the price of Ethereum to new highs. The bullish sentiment is further supported by technical indicators pointing to strong upward momentum.
The daily chart of Ethereum highlights a strong breakout above key resistance levels including the 50-day and 200-day moving averages. The breakout has been accompanied by a significant increase in trading volume, indicating strong buying pressure. The RSI has also entered the overbought territory, reflecting intense buying interest.
This surge is not just affecting Ethereum. The broader cryptocurrency market is seeing ripple effects, with Bitcoin also experiencing a significant rally. However, Ethereum's rally dominated, with the asset gaining more than 10% in the past 24 hours. This rally not only pushes Ethereum price above $3,600 but could also challenge the $4,000 level.
More than $260 million in short positions were liquidated as traders scrambled to cover their losses, according to recent figures. This mass liquidation added further momentum to the uptrend, creating a feedback loop of buying pressure.
As Ethereum approaches the $4,000 level, several factors will be important in determining its next move. The potential approval of the Ethereum ETF remains a key catalyst as it is likely to attract a wave of institutional investors. Moreover, continued positive sentiment and strong technical indicators are likely to sustain the current bullish momentum.
Shiba Inu being pushed
Due to Ethereum’s surge, Shiba Inu received some inflows and was able to break through the local resistance level reflected at the 50 EMA. That resistance is suppressing SHIB's performance and pushing it downwards.
Shiba Inu's recent breakthrough is significant in that it has finally succeeded in breaking through a key technical barrier that has limited price volatility. The 50-day exponential moving average (EMA) has been a formidable resistance level, but SHIB's recent move above this threshold signals the possibility of further upward momentum.
For several weeks, the price of SHIB has been squeezed between the support levels provided by the 50 EMA and the 200 EMA. The recent influx of buyers driven by Ethereum’s impressive performance has given SHIB the boost it needed.
Volume analysis supports this bullish story. Trading volumes have increased noticeably, indicating strong interest and conviction from traders and investors. This surge in volume is very important as it can sustain the breakout and push the price higher.
Going forward, SHIB is expected to face the next resistance near the $0.000028 level, where previous attempts to rise have stalled. If SHIB can maintain its momentum and attract continued buying interest, it could make a strong push towards this objective. Conversely, it will be essential for SHIB to sustain above the 50 EMA to confirm the validity of this breakout and avoid a drop back into the previous consolidation range.
XRP's uphill battle
XRP has finally broken out of the 50 EMA and is approaching the 100 EMA, which could potentially lead to a breakout of the 200 EMA. Such a bullish move would be a sign of a long-term price reversal or even a golden cross in the near future.
The daily chart shows that XRP gained significant momentum after overcoming the 50-day exponential moving average that was acting as a stubborn resistance. This performance strongly indicates that the bulls are in control. XRP’s next target is the 100 EMA, currently located around $0.55. A successful break above this level would further strengthen our bullish outlook and set the stage for a challenge at the 200 EMA.
The 200 EMA is currently near $0.57 and is a key resistance level. Historically, crossing this threshold has signaled a significant change in market sentiment, often marking a transition from a bearish trend to a bullish trend.
If XRP manages to break above the 200 EMA, it could trigger a long-term price reversal and lead to a golden cross. A golden cross occurs when the short-term moving average crosses the long-term moving average. Usually the 50 EMA occurs when it exceeds the 200 EMA and is considered a strong bullish signal.
About the Author
Armand Sirignan
