Ethereum (ETH) has recently shown resilience and potential in its price action. After a period of consolidation, ETH managed to surpass a resistance level that had previously hindered its upward movements. This breakthrough is significant as it indicates a shift in market sentiment and establishes a new foundation for Ethereum’s future climb.
Historical price patterns suggest that when a resistance level is surpassed, it often transforms into a support level. This means that the price level ETH has just surpassed may become a launchpad for further gains. Additionally, the recent upward move has been accompanied by a noticeable increase in trading volume, which lends credibility to the sustainability of the breakout. High volume indicates genuine market movement and suggests that the current price level is backed by substantial interest and participation from market participants.
As ETH approaches the $2,000 level, the crypto community is buzzing with speculation about the potential for further upward price movement. If the newfound support level holds, ETH may have laid the groundwork for a sustained upward trajectory.
On the other hand, Shiba Inu (SHIB) faces a significant challenge in breaking and holding above the 200 Exponential Moving Average (EMA). The 200 EMA is a trend-following indicator that smooths out price data over time and places significant weight on recent prices. Breaking above this level is substantial due to SHIB’s past performance and current market dynamics.
Currently, SHIB’s price hovers just below the 200 EMA, indicating a troublesome state for the token. The 200 EMA acts as a resistance level where selling pressure is likely to be encountered. Traders and investors are closely watching to see if SHIB can gather enough buying strength to break through this resistance.
The volume profile presents a mixed signal for SHIB. While there has been an uptick in volume, it is not decisively high enough to confirm a robust breakout pattern. This suggests a lack of conviction among buyers, making the possibility of breaking above the 200 EMA less certain.
A sustained break above the 200 EMA could potentially lead to a bullish scenario, where confidence builds and invites further buying pressure. However, without strong volume support, any attempt to rise above this level could be short-lived and result in a false breakout followed by a sell-off.
There are three possible scenarios for Cardano (ADA) based on its current chart. The first scenario is a bullish continuation, where ADA has been on an upward trend, breaking past previous resistance levels. The moving averages (MAs) align below the price, and the trend appears to be moving upward, indicating a solid argument for continued bullish momentum.
The second scenario is consolidation before the next significant move. After a sharp upward move, assets often enter a period of consolidation where the price stabilizes before the next direction is determined. For ADA, this could mean moving sideways as the market decides its next move.
The third scenario is a bearish reversal. Despite the current bullish appearance, the possibility of a bearish reversal cannot be ignored. If ADA fails to maintain its current support level, it may signal a sell-off. A break below the recent bullish candlesticks and moving averages could indicate a trend reversal.
In conclusion, Ethereum’s recent price action shows resilience and potential, with a breakthrough past a resistance level. This sets the stage for further gains if the newfound support level holds. On the other hand, Shiba Inu faces a significant challenge in breaking above the 200 EMA, with mixed signals from the volume profile. Cardano presents three possible scenarios, including bullish continuation, consolidation, or a bearish reversal. The crypto market remains dynamic, and traders and investors are closely monitoring these developments.
Source: This article was originally published on U.Today