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Ethereum (ETH) Lost All 'ETF Gains,' Shiba Inu (SHIB) on Its Way to Add Zero, Solana (SOL) Reaches $135, Critical Support Activated

Published 07/05/2024, 08:30 AM
Updated 07/05/2024, 12:45 PM
© Reuters Ethereum (ETH) Lost All \'ETF Gains,\' Shiba Inu (SHIB) on Its Way to Add Zero, Solana (SOL) Reaches $135, Critical Support Activated
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U.Today - The second-biggest cryptocurrency on the market has reached "pre-ETF rumor" price levels, practically losing all their gains since May. Things are not looking good, and the only relatively positive thing we can see is the descending trading volume amid the price correction.

Ethereum's price rose initially as a result of the much-anticipated ETF news. It appears, though, that traders lack the conviction to keep the rally going despite the ETF announcement alone. Ethereum's current price of $3,205 is significantly below its recent highs, indicating that there was insufficient purchasing interest.

The absence of notable advancements in Ethereum's ecosystem this year is a major contributing factor to the lack of buying support on the market. There have not been any significant additions or innovations to the network that would increase its demand or utility.

This means that neither new investors nor existing ones are drawn to the Ethereum network and, as a result, usage and demand for it remain low.

An uncertain future lies ahead for Ethereum according to the technical analysis, too. There is a bearish trend in the price as it has dropped below the 50 EMA and the 100 EMA critical support levels. The 200 EMA at $3,090 is the next important support level, and if the current trend holds, it may be tested soon.

Shiba Inu's disrupted plans

Bitcoin plummeting below $60,000 has clearly disrupted a lot of plans on the market. Not many expected the digital gold to drop down so badly in the last 24 hours, which greatly affected the performance of assets like Shiba Inu, which lost a substantial portion of their values.

Shiba Inu (SHIB) is down a lot from its recent highs, trading at about $0.00001565. The asset has been steadily losing value, and the recent volatility on the market has made this trend worse. Key moving averages indicate additional bearish momentum, and the chart illustrates SHIB's difficulty finding support.

It is challenging for SHIB to regain its footing because of the resistance levels set by the 200 and 100 EMAs. The entire cryptocurrency market has been impacted by Bitcoins decline below $60,000. Since Bitcoin is the most popular cryptocurrency, its performance frequently influences other digital assets. Plunging panic sales have clearly affected altcoins such as Shiba Inu.

Shiba Inu has long displayed technical weakness. A bearish trend is indicated by the asset's recent trading below its major moving averages. An oversold state is indicated by the RSI at 27, but a recovery is difficult because there are not any significant support levels below the current price.

Investor caution has increased as the general outlook for the market has turned negative, according to various sentiment indicators. As a result of traders' reluctance to invest in a market that is declining, SHIB is under additional pressure.

Solana goes down

Solana went down with the rest of the cryptocurrency market, hitting a $135 price threshold, which is considered a critical support level as it coincides with the 200 EMA. The drop below it would be a long-term bearish signal that hints at the continuation of the bearish trend.

There is increasing pressure on Solana, which is currently trading at about $134. Traders' attention is focused on the 200 EMA at $131.29, which is a critical support level. A break below this mark would probably indicate the continuation of a bearish trend and might trigger additional drops.

In line with the bearish outlook, Solana has recently sold off and is now below its major moving averages, which include the 50 EMA at $147 and the 100 EMA at $144.

Because of Bitcoin's recent decline below $60,000, the sentiment surrounding the cryptocurrency market as a whole has turned negative. Altcoins such as Solana are facing more pressure due to the wider market downturn. Bitcoin may push Solana down even more if it keeps having trouble.

Solana is getting close to oversold territory. Although this might point to a possible rebound, technical indicators and the general mood of the market point to the possibility that any bounce would be fleeting unless conditions in the wider market improve. Solana may stabilize and possibly rise again if it can maintain its hold above the 200 EMA at around $130.

This content was originally published on U.Today

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