Ethereum, Bitcoin, Shiba Inu Price Analysis: Crypto Market at Critical Juncture

Ethereum's Downward Spiral

Ethereum (ETH) is struggling to maintain stability above critical support levels, trading at approximately $1,960 after a sharp decline from $4,000. Technical indicators suggest a potential drop below $1,000, a level not seen in nearly three years.

The price chart reveals a consistent downward trend since January, with ETH marking lower highs and lows. The rejection from the $1,850-$2,000 resistance zone and its position below the 50, 100, and 200-day EMAs highlight growing bearish momentum. The RSI, nearing oversold territory, further underscores increasing selling pressure.

If market conditions worsen, ETH may test the psychological support near $1,000. A breach of this level could push prices toward $800-$900. However, a potential double-bottom formation between $1,500 and $1,600 could signal a rebound, potentially leading to a relief rally above $2,000 if accompanied by increased volume and market recovery.

Shiba Inu Shows Resilience

Despite broader market uncertainty, Shiba Inu (SHIB) is displaying unexpected strength. After testing the critical support at $0.000011, SHIB has rebounded to $0.000012, fueled by growing momentum and rising volume, which may indicate a trend reversal.

The recent uptick in volume suggests increased investor interest, with traders defending the $0.000011 zone. SHIB is now testing resistance between $0.0000124 and $0.0000130. A breakout above this range could target $0.0000155 and $0.0000171, both near moving average resistance levels. The RSI, rising from oversold territory, supports the bullish case, though it remains below 45, signaling improving sentiment without overoptimism.

If SHIB fails to breach $0.0000130, it may retest $0.000011, but current strength and volume suggest bulls are gaining control.

Bitcoin at a Technical Crossroads

Bitcoin (BTC) is nearing a critical juncture as a potential "death cross" looms, with the 50-day moving average approaching the 200-day moving average. However, recent price action offers hope, as BTC has rebounded from below $78,000 to above $81,000.

The ability to reclaim and sustain $85,000 is crucial. A move above this level could nullify the bearish crossover, transforming the death cross into a potential bear trap. The RSI, now above 43 after recovering from oversold territory, indicates improving momentum. A recent volume spike during the recovery further supports the bullish case.

If BTC fails to breach $85,000, it may retest $75,000 or lower, confirming the death cross. However, a sustained move above $85,000 could signal fresh strength and alter the market's outlook.

The crypto market remains highly volatile, with Ethereum and Bitcoin facing critical support tests, while Shiba Inu shows surprising resilience. Traders should closely monitor these key levels and broader market sentiment.