CoinDesk Report:
The price of the market’s second-largest cryptocurrency has reached levels last seen before “ETF rumors,” nearly wiping out all gains since May. The outlook appears grim, with the only relatively positive aspect being a decrease in trading volume during the price adjustment period.
Ethereum’s price initially surged on anticipated ETF news. However, traders seem hesitant, and despite the ETF speculation, Ethereum struggles to maintain upward momentum. Currently priced at $3,205, significantly below recent highs, indicating waning buying interest.
ETH/USD Chart from TradingView
The lack of significant advancements within the Ethereum ecosystem this year is a primary reason behind the market’s lack of buying support. Without substantial new features or innovations, Ethereum fails to increase its demand or utility.
This implies that Ethereum will not attract new or existing investors, thus keeping its usage and demand relatively low.
From a technical analysis perspective, Ethereum’s future is fraught with uncertainty. The price trend is bearish, having breached critical support levels of the 50 EMA and 100 EMA. The 200 EMA at $3,090 is the next significant support level, likely to be tested soon if the current trend persists.
Shiba Inu’s Plans Disrupted
Bitcoin’s drop below $60,000 has clearly disrupted many plans in the market. Few anticipated such a sharp decline in digital gold over the past 24 hours, greatly impacting assets like Shiba Inu, which have lost a substantial portion of their value.
Shiba Inu (SHIB) has plummeted significantly from recent highs, trading at around $0.00001565. The asset has been steadily depreciating, with recent market volatility exacerbating this trend. Key moving averages indicate further strengthening of the bearish momentum, with charts showing SHIB struggling to find support.
Due to resistance from the 200 and 100 EMAs, SHIB finds it challenging to regain its footing. The entire cryptocurrency market is influenced by Bitcoin’s dip below $60,000. As the most popular cryptocurrency, Bitcoin’s performance often impacts other digital assets. Panic selling has evidently affected altcoins like Shiba Inu.
Shiba Inu has long exhibited technical weaknesses. Recent trading has been below its major moving averages, indicating a bearish trend. With an RSI of 27, it is oversold, yet a rebound is difficult without significant support levels below the current price.
Various sentiment indicators show increasing caution among investors as the overall market outlook turns negative. Traders’ reluctance to invest in a declining market adds extra pressure on SHIB.
Solana Crumbles
Solana has fallen alongside other parts of the cryptocurrency market, touching the $135 price threshold, seen as a critical support level coinciding with the 200 EMA. Breaking this level would signal a long-term bearish trend, suggesting continued downward pressure.
Solana faces mounting pressure, currently trading around $134. Traders are closely watching the 200 EMA at $131.29, a crucial support level. Breaking below this level could indicate a continuation of the bearish trend, potentially leading to further declines.
In line with bearish prospects, Solana has seen recent sell-offs, currently below its major moving averages, including the 50 EMA ($147) and 100 EMA ($144).
Bitcoin’s recent drop below $60,000 has turned sentiment negative across the entire cryptocurrency market. Amid widespread market downturn, altcoins like Solana face greater pressure. If Bitcoin continues to struggle, it could further depress Solana’s price.
Solana is approaching oversold territory. While this may signal a potential rebound, technical indicators and overall market sentiment suggest any rebound could be short-lived unless there is an improvement in the overall market conditions. Maintaining stability around $130, just above the 200 EMA, could potentially stabilize Solana and allow for another uptick.