Bitcoin (BTC) on the verge of losing $40,000, Ethereum (ETH) in perilous position, Shiba Inu (SHIB) at local support

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Ethereum is on the verge of a precarious situation. The current price chart points to a worrying situation: the 26-day exponential moving average (EMA), a key indicator of short-term momentum, is in danger. If this level is not maintained, the value of Ethereum could fall to the $2,347 mark, a scenario that could well trigger a deeper decline.

This potential drop below the 26 EMA is crucial as it suggests an easing of buying pressure and a shift in market sentiment from accumulation to potential distribution. A break below this level would not only establish $2,347 as the next price floor, but could also exacerbate the asset's losses, leading to further bearish momentum.

ETH/USD chart from TradingView

Despite the rise of Layer 2 networks, which have not accelerated the expected recovery, the Ethereum ecosystem has faced some challenges. The broader market also failed to show the explosive upside that many investors had hoped for, with Ethereum's performance reflecting this muted market energy.

Additional support and resistance zones can be seen in the chart. On the support side, after the $2,347 level, the next critical support is around $2,175.2 – a breakout could see ETH test the psychological and technical support near the $2,000 level. Resistance, on the other hand, is firmly anchored at the recent high of $2,547.6. This price point serves as a litmus test for Ethereum’s ability to recover and regain bullish momentum.

The current market dynamics, characterized by cautious trading and a lack of clear direction, have placed Ethereum in a zone of uncertainty. Investors are advised to monitor these levels closely as a break below or above them could signal Ethereum's next significant move.

Bitcoin in trouble

Bitcoin is at a precarious point as it teeters on the edge of the critical $40,000 level. The recent price action paints a worrying picture for Bitcoin enthusiasts as the asset loses its grip on the 50-day exponential moving average, a key support level that has historically indicated bullish sentiment.

As Bitcoin price struggles to maintain the $40,000 level, the next potential stop lies at the 100-day EMA. However, this level does not traditionally provide significant support, and a break below could result in a decline below $39,000, leading to increased market concerns. The chart shows that the next major support zone is near $35,888, a level that buyers may try to defend vigorously.

On the resistance front, Bitcoin faces a major challenge at the $42,786 price level. Overcoming this resistance is crucial for Bitcoin to regain stability and show the potential for recovery. However, the market currently lacks the necessary liquidity to enable a strong recovery as trading volumes remain relatively low.

Shiba Inu is hit

The token is currently trading at local support levels, which is crucial for its short-term future. A fall below this point could spell trouble, signaling a possible decline and testing the resilience of the investor base.

The current market landscape for SHIB is challenging, with a noticeable lack of growth catalysts and low liquidity in the broader cryptocurrency market, both of which could exacerbate the asset's precarious situation.

However, there is a glimmer of hope. The declining trading volume that accompanies SHIB’s price consolidation suggests that the bearish momentum may be weakening. This slowing of selling pressure often precedes price stabilization or even a reversal as bulls regain control.

As for the specific price levels, SHIB is currently finding preliminary support around the $0.000027 level. If this level is not held, the next support zone is at $0.000022, which could serve as a new accumulation point for buyers. On the resistance side, SHIB is facing a hurdle at $0.000035, the break of which could open the door for a retest of higher levels, possibly in the $0.000040 area.

About the author

Arman Shirinyan

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.

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