The recent surge in Ethereum (ETH) prices has momentarily halted, prompting speculation among investors about when the upward momentum might resume. A closer examination of the current market conditions and recent developments offers insights into potential future scenarios.
Following a notable uptrend, the Ethereum chart indicates a recent pullback, with the market seemingly taking a breather in a consolidation phase. This pause is considered healthy as it allows the market to establish new support levels. Notably, the price remains well above its 50-day and 100-day moving averages, signaling a continued bullish trend. The relative strength index (RSI) has retreated from overbought levels, potentially creating room for another price increase.
In a bullish scenario, if Ethereum maintains its support levels and avoids falling below the moving averages, the price could gear up for another rally. Factors such as increased adoption and positive market sentiment could fuel this resurgence. Traders are advised to watch for a narrowing of Bollinger Bands, followed by a breakout above the upper band, indicating the potential start of another bullish phase.
Conversely, a break below the moving averages could signal a bearish reversal. Increased selling pressure and negative market sentiment may lead to a downward trend, with a bearish crossover on the MACD confirming this possibility. Recent data shows a steady growth in the burn rate, outpacing emissions six months after the Merge upgrade, contributing to Ethereum’s deflationary aspect. However, the daily burn rate hit a seven-month low on March 12, showcasing an over 89% drop since record highs. This dynamic in the burn rate could impact supply and demand economics, influencing the price.
Investors are advised to monitor the continuation of the net burn trend, which, if sustained, could decrease supply and potentially drive prices higher, provided demand remains steady or increases.
In the cryptocurrency sphere, the meme coin frenzy continues as Shiba Inu (SHIB) takes center stage with recent price actions, prompting discussions about its potential breach of the $0.00001 threshold this week. Massive transfers by Binance have added fuel to the speculation, necessitating a technical analysis to evaluate SHIB’s prospects.
Analyzing the SHIB price chart reveals a significant uptick in value, challenging previous resistance levels. The moving average convergence divergence (MACD) indicates a positive trend, with the blue MACD line comfortably above the signal line, suggesting robust bullish momentum. While the relative strength index (RSI) is not in the overbought territory, it is trending upward toward the 70 mark, indicating increasing buying pressure.
Crucially, SHIB has breached the 50-day and 100-day moving averages, signaling a strong uptrend. Volume bars align with the price increase, confirming bullish sentiment among traders. The expanding Bollinger Bands denote increased market volatility and the potential for substantial price movements.
The psychological mark of $0.00001 is now in sight for Shiba Inu. To sustain a move above this level, SHIB must maintain its current momentum and see a continued influx of buying volume. A daily chart close above this level could confirm a bullish breakout, potentially leading to further gains.
Large-scale SHIB transfers by Binance add to the speculative environment, possibly indicating institutional interest or significant traders taking positions, which could result in dramatic price movements.
While the current technical setup for SHIB appears promising, investors are cautioned about the inherent volatility of meme coins and their sensitivity to market sentiment. Monitoring technical indicators and staying informed about large transfers will be crucial in determining whether SHIB can maintain its upward trajectory.
