Ethereum (ETH) Forms Crucial Ascending Channel, Shiba Inu (SHIB) Might Surprise Us, Will It Revitalize Bitcoin (BTC) Run?

Ethereum has entered an ascending price channel, which could dictate its performance in the short term. This technical formation suggests a cautiously optimistic outlook but also flags potential risks ahead.

The ascending channel observed on Ethereum’s daily price chart shows that ETH has been achieving higher lows and higher highs, a bullish indicator in traditional market analysis. However, the current positioning near the lower boundary of the channel around $3,000 raises concerns about a possible breakdown acceleration. If Ethereum fails to hold this level, it could see a correction toward the $2,700 mark, which would signify a significant shift in market sentiment and momentum.

This potential decline to $2,700 is critical as it aligns with the 200 EMA and could serve as a foundation for ETH to stabilize and potentially rebound. However, should ETH maintain its trajectory within the ascending channel, the immediate resistance to watch is at approximately $3,300. Overcoming this level could pave the way for Ethereum to approach the upper boundary of the channel near $3,500, which would reinforce bullish sentiment and possibly attract further buying pressure.

Whether Ethereum will climb to test new resistances or face a downward correction will largely depend on the recovery of Bitcoin and consistent market inflows which are nonexistent at this point in time.

Shiba Inu’s volatility drops

Shiba Inu shows subdued volatility, which might be preparing the ground for an unexpected rally. Despite a prevailing lack of strong price movements, which typically discourages retail investors seeking quick gains, SHIB’s recent trading patterns suggest a potential shift in dynamics.

The meme coin, known for its vibrant community and explosive growth phases, is currently witnessing a consolidation phase that could be a precursor to significant price action. Although recent trading volume has not shown dramatic spikes, a gradual increase in buying activity suggests that investors are accumulating positions, likely in anticipation of future price growth.

Currently SHIB is hovering near a critical support level at approximately $0.00002272. If this level holds, it sets a strong base for the token. However, a breakdown below this support could see SHIB testing further lows around $0.000017.

On the upside, if SHIB can gain enough momentum to push through current market sluggishness, the first significant resistance lies near $0.00002690. Overcoming this barrier could validate bullish sentiment, leading to a test of the next resistance at around $0.00002960. Such movements would not only confirm a reversal but could also reignite interest among retail investors who thrive on volatility and dynamic price movements.

The current market situation for SHIB, characterized by its relative stability and increasing purchase volume in quantity, may indeed set the stage for a surprising turn.  

Bitcoin’s potential fuel

Bitcoin and Ethereum spot ETFs have started trading in Hong Kong. It opens new avenues for both local and nonlocal investors who meet the strict regulatory requirements, including comprehensive customer due diligence. The introduction of these ETFs is seen as a significant step forward in the mainstream financial adoption of cryptocurrencies and could potentially serve as a catalyst for Bitcoin’s price movement.

Currently, Bitcoin exhibits a sideways trend in the market, accompanied by descending trading volumes, signaling a period of consolidation. Despite this, the launch of ETFs introduces fresh liquidity and could attract institutional investors, potentially invigorating Bitcoin’s market activity.

From a technical perspective, Bitcoin has been trading in a narrow range, with immediate resistance near the $63,000 mark. This level has acted as a strong resistance point over recent weeks. On the downside, the support at around $59,988 has been crucial in preventing further declines.  

If Bitcoin can surpass this threshold, the next significant resistance lies near $65,000. A sustained move above this level might confirm a revitalization of the bullish trend, possibly steering Bitcoin toward higher price points in the near future.

About the author

Arman Shirinyan