ahead

• Shiba Inu’s consolidation
• Bitcoin’s chance

Following a brief retreat from recent highs, Ethereum price action is staying solid above $4,430. Buyers are reassured by the bounce at this level, which indicates that the market is still structurally sound and that a $5,000 path appears more likely.

This view is supported by technical indicators. With short-term support from the 26 EMA, ETH is trading comfortably above its major moving averages. As higher lows continue to form on the daily chart, the uptrend that began in mid-July is still in place. This implies that rather than leading to more significant corrections, dips are still being accumulated.

ETH/USDT Chart by TradingView

Buyers firmly intervened to support the trend in the $4,430 zone, which served as a solid cushion. Nonetheless, the apparent drop in trading volume during the most recent rebound raises some concerns. Generally speaking, a rising price combined with declining volume indicates weakened buyer conviction, which can occasionally portend slower momentum or temporary fatigue. Price swings could become more erratic if momentum traders start to pull out if volume keeps dropping as ETH rises.

Ethereum’s overall positioning is still solid in spite of this factor. The market structure and strong demand at higher support levels suggest that the $5,000 target is easily attainable. There is a good chance that ETH will rise further as long as it stays above $4,300 to $4,400 in the upcoming days.

Ethereum might not only test $5,000 but also become a new support zone if bulls are able to maintain pressure and volume stabilizes. On the other hand, more consolidation may be required before ETH makes a clear breakout if weakness continues and volume continues to decline.

Shiba Inu’s consolidation

Although Shiba Inu is consolidating within a narrowing range, the upward trajectory is not entirely evident. If buyers don’t intervene with greater volume, the token’s numerous layers of resistance could impede or even stop the bullish momentum. Moving average resistances make up the first three obstacles. Although SHIB is currently trading just above the 26 EMA, recent sessions have seen multiple rejections at this level, which has served as a crucial short-term pivot.

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Situated just above the current price levels, the 50 EMA closely monitors the market and has historically offered strong resistance during unsuccessful breakout attempts. A medium-term barrier that bulls have found difficult to consistently overcome, the 100 EMA is another noteworthy obstacle. The descending trendline derived from recent swing highs makes these difficulties even worse.

This line continues to exert upward pressure on SHIB’s price and has capped several rallies. Restoring bullish momentum would depend on breaking through this level, but doing so calls for a decisive move with rising volume, which has been noticeably lacking in recent weeks.

A final and possibly more difficult test is waiting at the 200 EMA even if SHIB is able to overcome these four resistances. This long-term indicator often marks the boundary between bullish and bearish phases and determines the general direction of the market. Since the 200 EMA is currently well above the current price, its function as a possible ceiling is further supported.

Bitcoin’s chance

The level to keep an eye on is $118,367 as Bitcoin tests a significant turning point once more. Based on recent market activity, it appears that this area is developing into a major buyer-seller battleground.

Following a steep decline from the $124,000 range, Bitcoin recovered to linger near the 26 EMA, which is now in the $117,000-$118,000 range. This region is now crucial because should the price hold, it might serve as the starting point for a fresh upward trend. However, a decline below would allow for a retest of the $115,000 support and possibly even lower levels.

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The fact that declining volume has coincided with the pullback is one sign that bulls should be encouraged. In this case, there is no surge in sell volume, which is typically associated with strong bearish reversals. It is more likely that the recent dip is a pause rather than the beginning of a reversal because declining volume during the correction indicates that selling pressure is tapering off.

With its value close to 54, the RSI supports this neutral to slightly bullish outlook. The market has room to move higher if buying interest picks back up as the indicator has not entered oversold territory despite the cooling momentum.

Going forward, the pivot is still at the $118,367 level. Its continuation toward $122,000 and beyond would be confirmed by a persistent move above it. But if you don’t defend it, the situation might quickly shift and put more pressure on Bitcoin.

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