Ethereum Surges 31% Igniting Crypto Market Rally

Ethereum (ETH) experienced a remarkable surge, skyrocketing by 31% within hours, igniting a significant rally in the cryptocurrency market. This surge propelled ETH above the 200-day moving average, which is a crucial indicator often used to distinguish between bullish momentum and bearish continuation. The rally has broken through several key resistance levels, including the 50 EMA, 100 EMA, and 150 EMA, all in a single sweep. The Relative Strength Index (RSI) is currently just above 81, which typically indicates caution as it enters overbought territory. However, such explosive moves can sustain RSI extremes for longer periods.

The massive price movement not only breaks the previous downward trend but also paves the way for a potential move toward $2,600 and higher, with the psychological $3,000 zone as the next macro resistance level. Historically, similar rally behaviors in Ethereum have led to months of steady upward movement. Investor sentiment toward Ethereum is rapidly improving, especially with growing institutional interest and renewed attention to ETH/BTC parity. Ethereum is likely to follow Bitcoin’s lead as it approaches $100,000, capitalizing on the positive market sentiment.

In the short term, a slight decline or consolidation around $2,300 to $2,400 would not be surprising. However, if Ethereum closes several daily candles above the 200 EMA, it would validate the breakout and shift the overall trend to a bullish one. For traders looking to capitalize on this wave, cautious accumulation and scaling into strength may be the best strategy.

Shiba Inu (SHIB) is showing renewed strength on the charts, with a potential breakout toward the $0.00002 level. The asset has surpassed significant resistance levels, breaching the $0.000014 zone and advancing toward the 200-day exponential moving average (EMA), which is currently around $0.000016. This long-term EMA has historically served as a ceiling for SHIB, making it a challenging barrier to break through. The recent increase in purchasing volume suggests growing interest and traction for the meme coin, supported by on-chain and market volume increases.

If SHIB can close a daily candle above the 200 EMA with sustained volume support, the move to $0.00002 becomes much more likely. Given the historical price congestion and relative thinness in the $0.000016-$0.00002 zone, SHIB could move swiftly toward its target if the 200 EMA breaks. Momentum indicators like the RSI are still rising and have not yet entered extremely overbought territory, indicating potential for further growth before a significant decline is anticipated. The psychological $0.000018 level has served as both support and resistance in the past, and traders should monitor possible resistance there.

Shiba Inu is poised for a significant run but faces one of its most challenging technical obstacles. The price of $0.00002 is not only feasible but could arrive quickly if bulls can maintain pressure and break the 200 EMA. The next few trading sessions will be critical in confirming the breakout or indicating another rejection.

Bitcoin (BTC) recently broke above $100,000, marking a significant psychological victory for bulls. However, this move could be a temporary overextension rather than the start of an unstoppable rally. Bitcoin tapped out close to $104,000 after breaking through the $98,000 resistance. This pattern is not uncommon for Bitcoin and often precedes consolidation or significant declines. The volume for this move is decreasing rather than increasing, which is a warning sign. The Relative Strength Index (RSI), which typically identifies local peaks at 75, is also well into overbought territory.

The current range of important support zones is $98,000 to $95,000. If Bitcoin cannot maintain above this range, a swift decline back to the $92,000 or even $90,000 region could occur. Bulls must defend the 50 EMA, which is approximately $93,000. Long term, the path to $100,000+ is still open, but maintaining a strong rally will likely require more time, consolidation, and volume.