It looks like Ethereum is setting the stage for a possible surge toward the psychologically significant $3,000 mark. Ethereum has developed a narrow consolidation range above the crucial support cluster at $2,400 over the last few weeks. This level has continuously served as a launching pad for upward attempts and is indicated by the convergence of the 50-day and 100-day moving averages.
With ETH breaking higher above $2,500 once more and posting a daily close that indicates momentum is subtly shifting back to the bulls, the most recent price action is displaying renewed strength. Recent sessions have seen a consistent increase in volume, suggesting that new money is beginning to enter the market.
This is especially noteworthy, since Ethereum’s price has mostly trailed behind Bitcoin’s in recent months, which has created a situation where catch-up rallies and mean reversion are likely outcomes. The $2,800 resistance level, which has frequently held back gains since late May, may soon be ETH’s target if the current upward momentum continues.
A persistent breakout above this region would pave the way for a test of $3,000, which is both psychologically significant and the upper limit of the larger consolidation structure that dates back to March. Technically speaking, the RSI is still in neutral territory at 52, indicating that there is still plenty of opportunity for additional appreciation before overbought conditions materialize.
A further indication that the trend is beginning to turn in Ethereum’s favor is the flattening 200-day moving average around $2,900, which may soon start to rise. Investors ought to keep a careful eye on ETH’s movement in the days ahead. It might take a weekly close that breaks through the recent highs and a confirmation of strength above $2,600 to set off a sustained move toward $3,000.
Bitcoin’s unexpected plunge
BTC appeared good for a sustained breakout that could propel it toward the much-anticipated $120,000 level after weeks of gradually grinding higher and finally breaking through the descending trendline that has been containing upside momentum since April.
But as soon as hope appeared, it vanished when Bitcoin closed below that crucial trendline resistance once more. This setback is depicted clearly in the daily chart. Although Bitcoin was able to close above the declining trendline with conviction, it was unable to sustain follow-through strength. Instead, the price was forced back below the breakout level almost instantly by sellers. It is not a trivial rejection.
Although trendline retests are a normal component of technical breakouts, a lack of buyer conviction is indicated when the move above resistance is unsuccessful and volume stops. Although this decline does not change the overall bullish outlook that has been developing since March, it probably indicates that it will take longer than many traders had anticipated to reach $120,000.
Technically speaking, Bitcoin is still above the 50 and 100-day moving averages, which continue to slope upward and indicate that the medium-term trend is still in place. The market will probably stay trapped in consolidation between $104,000 and $110,000 though unless Bitcoin can reclaim the descending trendline with robust volume support.
The RSI cooling near 55, well below overbought conditions, but also lacking the decisive momentum required for an immediate push higher is another indication of this lull in upside enthusiasm. Despite the fact that Bitcoin’s structural setup is still positive, the failed breakout indicates that recovering $120,000 will take more time and will require more consistent accumulation as well as more obvious bullish catalysts to rekindle confidence.
Shiba Inu moves further
The price chart of Shiba Inu is about to reach a critical point that could determine whether the meme coin has the strength to begin a long-term recovery or continue to consolidate. SHIB is now aiming for a crucial technical threshold, the 26-day exponential moving average (EMA), which is presently trading at about $0.0000118, after weeks of grinding sideways close to multi-month lows.
Every time SHIB bulls tried to gain traction, the 26 EMA has served as a dependable dynamic resistance since the middle of May. As of right now, every rally has ended just below this mark, forcing the price back into the lower consolidation zone as sellers intervene to reject breakouts. This pattern’s recurrence highlights the significance of the 26 EMA test, which could finally change market sentiment and pave the way for an advance toward the next resistance cluster around $0.0000131 if SHIB can close decisively above it.
A noticeable spike in trading activity over the previous few sessions has added to the excitement. Market players are positioning themselves ahead of this test as evidenced by the steadily increasing daily volume. As a sign that traders anticipate a decisive move rather than ongoing sideways drift, this spike in activity frequently precedes volatility.
With longer-term moving averages like the 50 and 100 EMA still pointing lower, SHIB is technically still in a downward trend. An additional indication that the market is poised for a breakout or breakdown is the relative strength index (RSI), which is currently hovering around 45 and does not indicate overbought or oversold conditions.
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