Ethereum
SHIB’s Critical Status, Will Ethereum (ETH) Reach $4,000? Solana (SOL) Could Soon See a Massive Reversal
Arman Shirinian
The market is growing at a respectable pace, but things are not as clear cut
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Shiba Inu is on the verge of losing significant price ground, which could spell serious trouble for the token. However, there are some support levels below the aforementioned support. Fortunately, volume is declining, which, if prices are falling, is a good sign for the asset.
There is a worrying trend in the SHIB technical indicators. The price attempted to hold above $0.00002476 while testing the lower limits of its current trading range.
SHIB/USDT chart by TradingView
This scenario implies the possibility of a further decline SHIB if it proves unable to maintain its position above these support levels. Another bearish signal on the chart is the descending triangle pattern, which generally indicates that the downtrend will continue.
Concerning volume, this bearish scenario of reduction in trading volume is encouraging. The price may stabilize in the short term, though lower volume in a downtrend usually means less selling pressure. But SHIB will need a big increase in buying interest – which is not there at the moment – for a significant recovery.
Bearish signals are also visible in the Relative Strength Index, which is hovering near the oversold zone at 44. This suggests that there could be room for a price rebound, but the next move will largely depend on the general state of the market. Investors should closely monitor the $0.00002310 support level.
Ethereum stays put
Ethereum could be on the verge of reaching $4,000 as the price remains stable and does not drop below the bottom of the trading channel at around $3,700. Fortunately, this fact brings us closer to the potential yield above the $4,000 threshold and the upcoming influx of Ethereum. But of course, always keep the broader market perspective in mind.
Breaking through this barrier could result in a larger decline that could push the price down to the next major support level, which is $0.00001940 (200 EMA). From the chart, Ethereum appears to be stabilizing, which is encouraging.
The price maintains its position above the crucial support level of $3,700. The medium and long term trend is clearly visible using the 50, 100 and 200 day moving averages. For now, the 50-day moving average serves as a support level. It is common for a consolidation pattern to form near the upper end of a trading range to precede a breakout in recent price action.
Solana’s turnaround plan
Solana might be closer to a reversal than you think. The price of the asset ensured a placement around 26 EMA, which serves as trendline support for now. Hopefully, SOL price can regain some momentum and finally show us the possibility of a reversal.
The price action in Solana is creating what appears to be a bullish pattern on the chart. Around $163, the 26-day moving average (EMA) is a strong support level above which the price is currently trading. This support has held steady, halting further declines and indicating that buyers are stepping in at this point.
As the price continues to rise, the 50-day moving average begins to rise, which may indicate the start of a new uptrend. Before confirming a long-term bullish reversal, Solana still has a way to go as shown by the bearish trend of the 200 and 100 day moving averages.
As is often the case before a possible breakout, volume analysis reveals a decline in trading volume during the most recent consolidation phase. Relative Strength Index (RSI) values around 50 indicate that the asset is neither oversold nor overbought.
Price could move in either direction, as this neutral position indicates, but current support levels offer a promising future. In order to verify a reversal, Solana needs to break strongly above the $170 resistance level.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.