Ethereum News Today: Shiba Inu Surges 20% as Ethereum Breaks $3,600

Shiba Inu (SHIB) experienced a significant surge this week, gaining nearly 20% as Ethereum's price broke above $3,600. This rally confirmed a long-awaited technical setup for SHIB, as it reclaimed its 200-day moving average and formed a golden cross between its 23-day and 50-day moving averages. These technical indicators suggest a potential continuation of the bullish momentum for the meme token, which has historically been closely linked to Ethereum's market activity.

The recent rally in Ethereum played a pivotal role in SHIB's price increase. The altcoin broke through a resistance level earlier in the week, attracting renewed interest from the market. SHIB's price action mirrored this trend, showing a steady upward movement rather than random spikes. This alignment with Ethereum's trend is consistent with SHIB's historical price behavior, indicating that the underlying market dynamics remain unchanged.

Unlike previous rallies where gains were not sustained, the current breakout in SHIB appears to be part of a longer-term bullish trend. The token is currently trading above $0.00001500, a level it has not been able to hold since spring. This sustained price action suggests a resurgence of the bullish trend, which could be further reinforced if Ethereum continues to outperform other market participants.

The golden cross formation, where the short-term 23-day moving average crosses above the 50-day moving average, provides additional confirmation for traders monitoring SHIB's momentum. This technical setup is typically seen as a bullish signal, indicating potential for further price appreciation. Combined with SHIB holding above its 200-day trend line, the overall market sentiment for the token appears more constructive.

With SHIB firmly above $0.00001500, the next significant resistance level is at $0.00001698. This threshold is crucial as it represents the last major hurdle before the token reaches its yearly highs. The increasing trading volume supports the notion that buyers are reentering the market with greater confidence compared to previous months, further bolstering the bullish outlook for SHIB.