The most recent news about the potential Ethereum ETF approval has pushed the market toward strong bullishness. The surge triggered more than $260 million in liquidations and pushed Ethereum above $3,600, potentially opening the way toward $4,000.
Ethereum’s explosive growth can be attributed to the anticipated ETF approval. It reinvigorated investor confidence, pushing Ethereum’s price to new highs. The bullish sentiment is further supported by technical indicators, which show strong upward momentum.
The daily chart for Ethereum highlights a robust breakout above key resistance levels, including the 50-day and 200-day moving averages. This breakout is accompanied by a substantial increase in trading volume, signaling strong buying pressure. The RSI has also moved into overbought territory, reflecting intense buying interest.
The impact of this surge extends beyond just Ethereum. The broader cryptocurrency market has seen a ripple effect, with Bitcoin also experiencing significant gains. However, Ethereum’s rise has been dominant, with the asset gaining over 10% in the past 24 hours. This rally has not only pushed Ethereum’s price above $3,600 but has also positioned it to potentially challenge the $4,000 level.
According to recent figures, more than $260 million in short positions were liquidated as traders scrambled to cover their losses. This mass liquidation has added further momentum to the upward trend, creating a feedback loop of buying pressure.
As Ethereum approaches the $4,000 mark, several factors will be crucial in determining its next move. The potential approval of the Ethereum ETF remains a key catalyst, as it would likely attract a wave of institutional investment. Additionally, continued positive sentiment and strong technical indicators could sustain the current bullish momentum.
Shiba Inu receives push
With Ethereum’s surge, Shiba Inu received some inflows and was able to break through the local resistance level reflected in the 50 EMA. That resistance has been suppressing SHIB’s performance, pushing it downwards.
Shiba Inu’s recent breakthrough is significant as it finally managed to push past a key technical barrier that had been capping its price action. The 50-day Exponential Moving Average (EMA) has been a formidable resistance level, but SHIB’s latest move above this threshold signals potential for further upward momentum.
For weeks, SHIB’s price was squeezed between the 50 EMA and the support levels provided by the 200 EMA. The recent influx of buying, driven by Ethereum’s impressive performance, provided SHIB the boost it needed.
Volume analysis supports this bullish narrative. There has been a noticeable increase in trading volume, indicating strong interest and conviction among traders and investors. This volume surge is crucial for sustaining a breakout and potentially driving the price higher.
Looking ahead, SHIB faces its next resistance around the $0.000028 level, where previous attempts to rally have faltered. If SHIB can maintain its momentum and attract continued buying interest, it could make a strong push toward this target. Conversely, it will be essential for SHIB to hold above the 50 EMA to confirm the validity of this breakout and avoid slipping back into the prior consolidation range.
XRP’s uphill battle
XRP has finally pushed through the 50 EMA, coming closer to the 100 EMA and potentially aiming for a 200 EMA breakthrough. Such a bullish move would be a signal for an upcoming long-term price reversal and even a golden cross in the foreseeable future.
The daily chart indicates that XRP has gained significant momentum after overcoming the 50-day Exponential Moving Average, which had been acting as a stubborn resistance. This achievement is a strong indication that the bulls are gaining control. The next target for XRP is the 100 EMA, currently positioned around $0.55. A successful breach of this level would further strengthen the bullish case and set the stage for a challenge at the 200 EMA.
The 200 EMA, currently around $0.57, is a critical resistance level. Historically, crossing this threshold has often signaled a substantial shift in market sentiment, marking the transition from a bearish to a bullish trend.
If XRP manages to break above the 200 EMA, it could trigger a long-term price reversal and possibly lead to a golden cross. A golden cross occurs when a short-term moving average crosses above a long-term moving average, typically the 50 EMA crossing above the 200 EMA, and is considered a strong bullish signal.
Read the full article here
