Ethereum

The price performance of Ethereum, Shiba Inu and Bitcoin is somewhat similar as all those assets are trying to recover and reach price levels that will make them stand out. Unfortunately, those recoveries are almost completely baseless and unlikely to yield strong movements toward local highs.

Shiba Inu not stabilizing?

The price of Shiba Inu has dropped to $0.00001105 and is not showing any signs of stabilizing, marking yet another period of intense pressure. There are no obvious support areas left to stop the decline after the token broke below its multi-month symmetrical triangle structure. Without volume, momentum, or any discernible buy-side strength, SHIB appears on the verge of dropping its price by another zero.

SHIB has lost important moving averages on the technical front, such as the 200-day EMA ($0.0000135) and the 50-day EMA ($0.0000125). The breakdown below these levels emphasizes the dominance of sellers and validates the exhaustion of bullish attempts. A clear rejection from descending resistance is followed by a steady decline with no indication of a demand spike, as the chart depicts.

SHIB/USDT Chart by TradingView

Trends in volume support this pessimistic view. Comparing trading activity to previous accumulation phases, it has collapsed, indicating a sharp decline in investor interest in SHIB. Since there are fewer bids to absorb sell orders, downside moves typically accelerate in low-volume settings. Another level of concern is added by momentum indicators. The RSI is slightly above oversold territory at 37, indicating weak momentum.

Relief rallies may normally be possible during oversold conditions, but in SHIB’s case, any bounce is unlikely to last due to the absence of accompanying volume. SHIB is basically in free fall because there isn’t any strong support. The $0.00001000 level is the next round-number zone. This psychological level may encourage speculative buying, but if it is broken below, SHIB’s price could drop to a new zero and possibly into the $0.00000900 range.

Ethereum takes it back

Ethereum has successfully recovered the $4,000 mark, which has now turned into a battleground for bulls and bears. ETH recovered from the 100-day EMA at $3,800 after a steep decline from highs close to $4,800, regaining significant ground and indicating that buyers are not yet prepared to relinquish control. Ethereum is currently trading just above $4,000 on the daily chart, but the recovery is not strong.

ETH/USDT Chart by TradingView

At 37, a surge of sell pressure caused the RSI to approach oversold territory, providing technical traders with a point of entry for a recovery. Volume data indicates that although buying interest has increased, it is still not robust enough to ensure long-term momentum. Since it serves as a mid-range pivot between the $3,800 support and the $4,300 resistance, as well as a psychological threshold, the $4,000 level is crucial.

The 50-day EMA and the descending resistance trendline converge at $4,280 and $4,300, which are the next targets if ETH can maintain above this level. If there is a breakout above this area, the path may reopen to $4,600 and ultimately retest the cycle highs around $4,800. Still, there is a significant chance of losing $4,000. An additional retest of $3,800, the final solid support before a possible decline toward the 200 EMA around $3,400, would be exposed if ETH were to close below this level on a daily basis.

In summary, while ETH has gained $4,000, the fight is far from over. To keep the recovery going, the bulls must firmly defend this level, any weakness could make the current rebound into just another relief rally inside a larger correction.

Bitcoin pushback

Talk of a possible push back toward $110,000 has been sparked by Bitcoin’s apparent bounce around $109,000. This comeback attempt, however, seems to be more of a transient response than a firm reversal, because it seems brittle and lacks structural support. Recently, Bitcoin fell below the 50-day EMA ($113,700) and the 100-day EMA ($112,200) on the daily chart, indicating short-term weakness. At $106,200, the price is currently just above the 200-day EMA, which is still the last significant safety net for bulls.

Although the 200 EMA has historically served as a long-term support, the current bounce did not come from it; rather, BTC is merely attempting to regain ground following several days of aggressive selling. This is what gives the recovery attempt the appearance of being unfounded. The current upswing lacks volume and conviction, in contrast to recoveries from oversold extremes or strong support zones. The lack of trading activity indicates that buyers are reluctant to intervene forcefully.

Near 38, the RSI is almost oversold, but not quite low enough to indicate exhaustion. This creates space for additional declines in the event that bearish sentiment returns. Bitcoin must recover the $112,000-$114,000 range, where the broken moving averages are currently acting as resistance, in order to confirm the $110,000 comeback. The market would only be able to view this rebound as more than a brief break in the downward trend at that point. Any short-term gains run the risk of being unwound quickly until that time.

To put it briefly, Bitcoin is making an effort to recover toward $110,000, but the move appears uncertain in the absence of a solid base or robust buyer support. The real test is yet to come: either regain momentum and overcome resistance, or run the risk of another retest of the $106,000 level, where the 200 EMA is waiting as the last line of defense.

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