As an analyst with over two decades of experience in financial markets, I have witnessed numerous bull and bear cycles in various asset classes. The recent downturn in Ethereum, Bitcoin, and Shiba Inu has caught my attention due to their significant impact on the broader crypto market.
1. A sharp decrease in Ethereum’s value has shattered expectations of a prolonged rise. As it dipped beneath its upward trajectory, Ethereum’s growth trend has now switched directions. Currently trading around $2,400, this level is concerningly low for the second-biggest cryptocurrency by market capitalization. This downturn has pushed Ethereum below the critical $2,500 threshold.
The $2,500 barrier was broken. Falling below this mark indicates that Ethereum might be headed for more losses, as it has historically acted as a crucial support zone. The bearish outlook is further supported by the declining volume that accompanies this decline. Less buying interest is usually indicated by lower trading volume during a price decline, which could make the current downtrend worse.
As an analyst, I find the downward break of the ascending trendline for Ethereum particularly troubling since it suggests that the recent rally may be ending. This trendline, which previously offered support, has now transformed into a barrier, making it challenging for Ethereum to regain its momentum in the short term.
Due to shifting investor attitudes, it’s increasingly likely that we’ll experience an extended period of decreasing prices (bear market). It would be prudent for traders and investors to brace for potential additional losses, since Ethereum is currently hovering around $2,400.
Bitcoin‘s decline
1. Lately, the cost of Bitcoin plunged significantly, bringing it back in line with its 200-day Exponential Moving Average. This sudden drop has left many traders questioning their long-term rally predictions, suggesting that a price adjustment and potentially a change in trend direction might be on the horizon.
Concerns about Bitcoin’s immediate future are rising among investors due to a massive $200 million loss in its market value. This steep drop in market capitalization could potentially intensify the selling trend and cause prices to fall further. It’s concerning that Bitcoin has failed to maintain its position above the 200 EMA, which historically serves as a significant line of support.
The disappointment among Bitcoin enthusiasts deepens as the digital currency has failed to surpass the significant $70,000 mark during this market phase. For traders and investors, this level serves as a major psychological milestone, and not reaching it suggests that the bullish trend may be losing steam. The recent price fluctuations indicate that Bitcoin is currently in a precarious position.
If the market gets back to the 200 Exponential Moving Average (EMA), it could signal a shift from a bullish to a bearish trend. A prolonged decline might start if the price drops below this point, which could lead to testing lower support levels around $55,000 or potentially even $50,000.
Shiba Inu retraces
As an analyst, I find myself observing a crucial moment in the journey of Shiba Inu, the once-prominent meme coin. The 50-day Exponential Moving Average (EMA), a significant resistance level that typically signifies a bullish trend when surpassed, has proven to be an obstacle for this cryptocurrency to overcome.
The current struggle for Shiba Inu to surpass a specific level indicates that there might be insufficient buyer interest in the short term, casting doubts on its immediate future. This challenge also mirrors a broader pessimism in the market about Shiba Inu, as it has repeatedly failed to breach the 50 Exponential Moving Average (EMA), suggesting more than just a technical hurdle.
With the asset seeming to slow down and not meeting expectations for a strong comeback, investors who were hoping for a robust resurgence might be reconsidering their holdings. As fewer people are ready to take a risk on SHIB‘s recovery, trading activity is dwindling, further emphasizing the reduced confidence.
The possibility is growing that Shiba Inu may undergo a substantial reversal due to market conditions. If investors continue to sell to minimize their losses, this selling pressure could increase significantly if Shiba Inu remains weak below the 50 Exponential Moving Average (EMA). This could initiate a downward trend, as a lack of buying interest could accelerate SHIB‘s decline and move it even further away from its latest high points.
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2024-08-29 03:44