Ethereum’s Price Surge Takes a Breather: Brace Yourself for the Next Bull Run

"Ethereum Experiences Temporary Correction as Market Pauses for Breath, Setting the Stage for New Support Levels"

The Ethereum chart is showing a recent pullback after a significant price surge, indicating a breather in the market. This consolidation phase is considered healthy as it allows the market to establish new support levels. Despite the pullback, the price of Ethereum remains well above its 50-day and 100-day moving averages, suggesting that the overall trend is still bullish. The relative strength index (RSI) has retreated from overbought levels, creating room for another potential price increase.

In a bullish scenario, if Ethereum manages to maintain its support level and avoids falling below the moving averages, the price may gear up for another rally. This could be driven by increased adoption and positive sentiment in the market. Traders should watch for a narrowing of Bollinger Bands, followed by a breakout above the upper band, as this could signal the start of another bullish phase.

On the other hand, a break below the moving averages could indicate a bearish reversal. Increased selling pressure and negative market sentiment could push the price of Ethereum down. A bearish crossover on the Moving Average Convergence Divergence (MACD) indicator could confirm this, suggesting that it might be time to brace for a potential downtrend.

Recent data reveals a steady growth in Ethereum’s burn rate, surpassing emissions six months after the Merge upgrade. This contributes to the deflationary aspect of Ethereum. However, on March 12, the daily burn rate of Ethereum hit a seven-month low, experiencing a drop of more than 89% since the record highs. The dynamics of the burn rate could potentially influence the supply and demand economics, which could, in turn, affect the price.

Investors should keep an eye on the continuation of the net burn trend, as it could lead to decreased supply and potentially higher prices if demand remains steady or increases.

Analyzing the price chart of Shiba Inu (SHIB), we can observe a significant increase in its value, with the token challenging previous resistance levels. The Moving Average Convergence Divergence (MACD) indicator shows a positive trend, with the blue MACD line well above the signal line, indicating strong bullish momentum. The relative strength index (RSI) is trending upward toward the 70 mark, suggesting increasing buying pressure.

An important factor to note is the breach of the 50-day and 100-day moving averages by SHIB, indicating a robust uptrend. The volume bars align with the price increase, further confirming the bullish stance among traders. Additionally, the expansion of the Bollinger Bands suggests increased market volatility and the potential for significant price movements.

The psychological mark of $0.00001 is within reach for Shiba Inu. To sustain a move above this level, SHIB would need to maintain its current momentum and see a continued influx of buying volume. If the price can close above this level on the daily chart, it may confirm the bullish breakout and potentially lead to further gains.

Recent large-scale SHIB transfers by Binance have added to the speculative fire. Such movements can indicate institutional interest or significant traders taking positions, which in turn can result in dramatic price movements.

The current technical setup for SHIB is promising, with the potential to reach and exceed the $0.00001 mark. However, investors should exercise caution as meme coins can be highly volatile and sensitive to market sentiment. Monitoring the aforementioned technical indicators and staying updated on news regarding large transfers will be crucial in determining whether SHIB can maintain its upward trajectory.

This article was originally published on U.Today.

Martin Reid

Martin Reid

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