The market is expiriencing somewhat of a storm as Shiba Inu, Ethereum and Bitcoin are losing multiple key support levels, and there is a good possibility of an aggravation here as no fresh inflows are present and most of the volume on the market is on the selling side.
Shiba Inu loses key support
The price of Shiba Inu has fallen below important support levels, indicating that a retest of the $0.00001 bottom may be closer than many anticipated. This indicates that the stock is once again under strong selling pressure. According to the asset’s current structure, if sentiment and technicals do not rapidly improve, the asset may be headed for new 2025 lows. The symmetrical triangle structure that had previously kept the price of SHIB stable for months has now been broken on the daily chart.
SHIB/USDT Chart by TradingView
The token broke because it was unable to hold above the 50-day and 100-day EMAs, making it susceptible to additional drops. There is still momentum working against bulls because the 200-day EMA is likewise sloping downward. Previously a dependable short-term floor, the $0.0000122 support zone is now resistance as bears gain ground. Red candles have seen an increase in volume, suggesting that sellers are growing more confident.
Although the RSI has entered oversold territory, it has not yet indicated a reversal, suggesting that the downward momentum may continue. SHIB may be headed for a test of $0.0000115 if the current circumstances continue with the possibility of a decline to the psychological $0.00001 level. In addition to representing a retest of SHIB’s annual lows, such a decline might put the asset in danger of breaching its larger 2025 support range. Recovery appears to be difficult for now.
Ethereum stumbles
The fact that Ethereum has dropped below the crucial $4,000 mark suggests that the market as a whole is weak and that more declines are likely. The decline occurred quickly after ETH failed to maintain its consolidation around the $4,400-$4,500 resistance zone, and bearish pressure took over.
Since its recent symmetrical triangle formation, ETH has been declining sharply, according to the daily chart. With sellers taking charge, this breakdown demonstrates that there is no buying support at higher levels. The bearish move has gained more weight as trading volumes have increased during the decline.
ETH/USDT Chart by TradingView
The Relative Strength Index, meanwhile, has dipped nearer to oversold territory, indicating that bearish momentum may yet worsen before a relief bounce takes place. Ethereum is in a precarious position right now, trading just below $4,000.
The next significant area of interest, if selling persists, is around the 100-day EMA, which is close to $3,833. This moving average has historically served as a dependable level of support during periods of correction, so buyers may intervene there to protect against further losses. Ethereum might level off and try to push back toward $4,200 if the 100 EMA holds.
It is impossible to rule out a more aggressive move toward the $3,600-$3,400 range if this support fails. The 200 EMA would then be the crucial last line of defense to prevent a protracted bearish cycle further below it, at $3,392.
For the time being, Ethereum’s failure to hold the $4,000 mark is a serious setback to bullish sentiment. Investors should closely monitor ETH’s response to the $3,833 mark in the upcoming sessions. Hopes for a midterm recovery could be raised by a strong bounce here, but failure would pave the way for a more significant correction.
Bitcoin pattern recognized
A head and shoulders pattern could determine whether the next move is a surge toward $123,000 or a plunge into bearish territory, which may be its most important formation of the year.
On the daily chart, the pattern has been gradually developing, with Bitcoin settling between $112,000 and $114,000 following several unsuccessful attempts to rise. Bitcoin is currently trading just above the 100 EMA, and the pattern’s neckline is a crucial support level.
The bullish head and shoulders scenario could be confirmed by a clear breakout above the $114,000 resistance, which would pave the way for a medium-term move to $123,000. This level is the next logical target for bulls, since it is where breakout traders and upside liquidity are likely to converge.
But prudence is still necessary. The danger of a decline will increase rapidly if the pattern does not finish and Bitcoin drops below the neckline. The next important level of support is the 200 EMA, which is presently trading at about $106,000. A decline to that level would push the market into a bearish narrative and put investor confidence to the test, even though this would still keep Bitcoin above its longer-term bullish structure.
Hesitance is also suggested by volume trends: selling spikes imply that whales are offloading at every rally attempt, and buying pressure has not been strong enough to break through resistance levels.
