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Ethereum, which has seen significant gains over the past day, was the biggest gainer in the crypto market during the fourth quarter. Ethereum price has experienced a sharp rise after weeks of slow recovery and is currently showing its strongest recovery since the beginning of the quarter. After breaking above some key resistance levels, ETH is currently trading around $2,616.
This recent surge can be primarily attributed to a significant increase in open interest. An increase in open interest indicates that more investors and traders are participating in the market, which often results in increased volatility and the potential for additional price appreciation.
An increase in open interest usually means that market confidence is increasing, as more long and short positions are being opened. Technically speaking, Ethereum has cleared a key resistance line that has been holding down the asset for months, recovering from the most recent support level near $2,400. Price performance is also trending upward.
A break in the 50-day moving average often signals the beginning of a stronger bullish trend. However, Ethereum still has some resistance to overcome, which may be difficult to overcome without sufficient buying pressure, especially at the $2,800 price range.
The question now is whether Ethereum can maintain this momentum in the coming days. The recent spike in open interest may indicate that traders are bracing for a larger market move, but it remains to be seen whether this translates into another significant boost or if profit-taking halts the rally.
Is the Shiba Inu on an upward trend?
Based on recent price movements that indicate a possible uptrend, Shiba Inu appears to be entering a new bullish phase. Combined with notable price increases and on-chain activity, SHIB could be a sign of improved market performance in the near future.
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According to technical analysis, a possible bullish reversal has begun as SHIB has broken through a key resistance level around $0.000018. A sustained rise above this level could signal a new uptrend for memecoin, so traders and investors should monitor it closely. If the price sustains above this important level, bullish investors could set their sights on $0.000020 as their next target.
A breakout above this level could indicate a more significant reversal and force SHIB to revisit the higher resistance levels from the beginning of the year.
It is important to remember that there is still uncertainty in the overall crypto market and that SHIB will need steady buying pressure to maintain its upward momentum. Investors who want to confirm the beginning of a new bull market phase should closely monitor both price trends and on-chain signals.
Solana faces several risks
On the chart, Solana appears to be developing a possible double top pattern, which could indicate trouble for the stock in the near future. SOL price has been steadily rising in recent weeks and is approaching the important $155 level.
This asset has historically shown a strong resistance level at this price point, raising concerns that the market does not have enough momentum to overcome it. Generally considered a bearish formation, the double top pattern occurs when the price tests resistance twice and fails to break through it, leading to a decline.
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In Solana's case, the chart shows that the asset previously reached this $155 mark and experienced a significant decline due to its inability to sustain further gains. With SOL once again approaching this level, traders and investors are now wary of the prospect of further reversals.
Therefore, Solana is not benefiting from current market conditions. Even though prices are rising, we haven't seen the type of volume increase that normally accompanies a strong breakout.
The immediate support levels are $140 and $135, so Solana could experience a significant drop if it fails to break out of the $155 resistance once again. Traders should keep a close eye on the $155 threshold for now. If this asset fails to breakout and the double top pattern is confirmed, a bearish phase for Solana could begin soon.
