Ethereum (ETH) has recently shown a significant improvement in its market performance, witnessing a price increase of more than 12% after moving steadily above $1,380. Like Bitcoin (BTC), Ethereum is starting to show positive momentum by breaking through important resistance levels. After surpassing the $1,380 mark, Ethereum began a sharp rise, successfully breaking the resistance at $1,450 and $1,500, which marked the beginning of a bullish trend.
Furthermore, Ethereum managed to cross the $1,550 zone, driven by the breakdown of the bearish trend line on the hourly chart of the ETH/USD pair at the $1,470 resistance. The momentum did not stop there; Ethereum continued to advance past the $1,620 resistance and peaked at $1,687. Currently, Ethereum is consolidating above the 23.6% Fibonacci retracement level of the upward move from $1,384 to $1,687.
In current trading, Ethereum is above $1,550 and the 100-hour simple moving average. However, traders should be cautious, as there is resistance near $1,650 to watch out for. If Ethereum manages to cross this resistance, the next target would be to test $1,680, with the next major resistance at $1,720. If Ethereum can break through $1,720, it might push the price towards $1,750, and a further increase above this level could open up opportunities for gains towards the $1,850 or even $1,880 resistance zone in the near future.
However, if Ethereum fails to break the $1,650 resistance, there is a possibility of a downward correction. Initial support lies near $1,615, with the next major support in the $1,580 zone. A drop below the $1,580 support could push the price towards $1,535 and the 50% Fibonacci retracement level of the rise from $1,384 to $1,687. Further downside could take Ethereum's price to $1,480 support in the near term, with the next key support at $1,420, which needs to be monitored in case of additional declines.
Despite these challenges, Ethereum appears to have strong momentum in the bullish zone, as indicated by the MACD and RSI being above 50. This suggests that Ethereum has the potential to continue its uptrend. However, it is essential to keep an eye on the established resistance and support levels as traders anticipate the next price movements.
On the broader cryptocurrency market front, Ethereum's performance isn't isolated. Bitcoin is also at a critical juncture, currently trading at about $81,000 after a strong comeback from below $78,000. The market is closely watching for a possible 'death cross' as the 50-day moving average approaches the 200-day moving average from above, a pattern traditionally indicating bearish momentum.
However, Bitcoin's ability to recover the $85,000 barrier is crucial. If Bitcoin can sustain a move above this level, it could nullify the bearish crossover and signal fresh strength. The RSI for Bitcoin has recovered from oversold territory and is currently above 43, indicating improving momentum and potential for further upside. During the recent recovery, volume also experienced a healthy spike, suggesting accumulation rather than distribution.
Nonetheless, caution remains necessary. If Bitcoin fails to rise above $85,000, a retest of the $75,000 zone or even lower could be possible, which would likely confirm the death cross pattern.
Meanwhile, Shiba Inu (SHIB) is showing surprising strength amidst the market uncertainty. Currently trading at about $0.000012, SHIB has recovered with growing momentum after teasing a break below the crucial support at $0.000011. This upward movement could signal the beginning of a trend reversal, which would be significant for the meme asset.
The notable increase in volume indicates heightened investor interest and renewed demand at these lower levels. A breakdown that might have added another zero to SHIB's price was avoided by traders defending this zone. SHIB is technically testing the resistance range between $0.0000124 and $0.0000130. A move above this region would indicate a breakout from the local downtrend and could lead to price levels of $0.0000155 and $0.0000171, both surrounded by moving average resistance levels.
The RSI for Shiba Inu is currently trading just under 45, having risen from oversold territory, which lends credence to the bullish argument. This change suggests that sentiment is improving without becoming overly optimistic, allowing for more upside potential without immediate exhaustion.
If SHIB can push above $0.0000130 on high volume, it could significantly change the market structure, leading to increased buying interest. However, if this level is not breached, a return to the $0.000011 support may occur, although recent strength and volume increase indicate that bulls are in control, at least for the time being.
As the cryptocurrency market continues to evolve, traders are advised to stay informed about the movements of key assets like Ethereum, Bitcoin, and Shiba Inu. With the potential for both upward and downward shifts, understanding the dynamics of support and resistance levels will be crucial for making informed trading decisions.
