Ethereum is now further declining into a short-term downtrend that could end its recent bullish recovery after losing its footing above $3,000. The price action has quickly turned sour after ETH‘s strong breakout earlier this month that forced it through its 200 EMA for the first time in months.
A falling wedge pattern breakdown is the most obvious warning sign. Bullish continuation patterns are typically thought of as falling wedges. However, the breakdown in the case of ETH demonstrates that the pattern served more as a reversal trap than a consolidation. This invalidation implies that the market is weakening rather than undergoing a healthy correction.
Ethereum now has no support at the 200 EMA, which is at $2,438. This adds to the bearish pressure. Because of the recent daily close below this crucial technical level, which has moved from support to resistance, the outlook for the coming days is bleak. If the next strong support level does not hold, a retest of $2,000 is very likely. It is located between $2,200 and $2,170. Additionally, volume trends are not favorable.
There has not been a surge in bullish buying volume to counteract the selling despite several red candles over the past few sessions. That proves one thing: people are becoming less confident. Ethereum’s macrotrend is still in place for the time being, but the wider market may follow if this local decline is not swiftly stopped.
How ETH’s rally was so brittle and how unprepared the bulls were for actual resistance is demonstrated by the failure to sustain bullish structure so quickly after breaking out above the 200 EMA.
XRP at pivotal state
The price of XRP is beginning to flirt dangerously with the 26 EMA, a crucial dynamic support level signaling the start of a critical juncture. With downside targets in the $2.18 and $2.04 range not far off, a more severe decline may be imminent if the asset’s current trading level of $2.31 is broken by this pivotal moving average.
The bullish momentum that propelled XRP toward the $2.80 mark after a brief rally has obviously stalled. Even more alarming is the volume’s steady decline, which suggests that buyer interest is waning. Without large inflows or a resurgence in sentiment, XRP might not be able to hold its current value, much less rise in the near future.
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A lot of bulls were aiming for the psychologically significant resistance level of $3.00, which the recent move invalidated. Since that path is now essentially blocked, XRP is consolidating within a smaller range, with each bounce appearing weaker than the one before it. Technically, if the 26 EMA breaks, the asset could potentially enter a more severe correction.
Although the fall may be slowed by the support confluence around $2.18, the door to $2.00 reopens if that cracks as well. Market sentiment and on-chain activity also exhibit this decision mode phase. While many traders are awaiting cues, few are prepared to make capital commitments at the present time. The bias remains skewed to the downside until volume picks back up and the price firmly reclaims higher support zones.
Shiba Inu gets cut
After what appeared to be a successful breakout attempt above the 100 EMA, Shiba Inu is once again under downward pressure. The asset raised expectations for a long-term rally in early May when it was able to break through this important moving average. The bullish momentum, however, soon waned, and SHIB has since made a significant retracement, falling back below the support zone it momentarily claimed.
SHIB‘s lack of conviction is a larger problem, as evidenced by the failed breakout above the 100 EMA, which is currently trading close to $0.000015. Even though volume increased during the attempted upward move, there was no follow-through buying. The token has now returned to the $0.000014 level due to a surge of selling pressure, with bearish momentum increasing.
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Slightly above the failed breakout zone, the 200 EMA (black line) is where the chart structure shows a clear rejection. This rejection now serves as a strong obstacle that SHIB will find difficult to get past in the absence of strong fundamental or speculative catalysts. Shiba Inu is still one of the most well-known meme coins on the wider market, but its usefulness is still debatable.
The market is not returning developers’ promises of ecosystem expansion, such as Shibarium and token burns, with sustained confidence. As an alternative, SHIB’s price still fluctuates in a boom-and-bust pattern typical of assets that are driven by hype. Any break below the current support level, which is between $0.0000135 and $0.0000130, would probably pave the way for a decline toward local lows.
