Shiba Inu Drops 4% Breaking Key Support Levels Bitcoin Tests 26 EMA Support After $110,000 High Ethereum Trapped in Ascending Channel With Low Volume

Shiba Inu (SHIB) is currently facing significant challenges as it trades at $0.0000133, down about 4% for the day. The meme coin has broken below important support levels, including the 50 EMA, which has been a crucial support line in recent months. This breach indicates a bearish trend, with the potential for SHIB to test the early 2025 lows in the $0.0000120-$0.000009 range. The increasing selling volume and the declining RSI suggest that momentum is currently on the side of the bears. If SHIB does not quickly recover the 50 EMA and push back above $0.0000145-$0.0000150, the likelihood of seeing $0.000009 increases daily. This would not only be a technical failure but also a significant blow to investor sentiment, potentially leading to a loss of liquidity and causing even the most loyal retail investors to reconsider their positions.

Bitcoin (BTC) is currently testing the 26 EMA as a possible support level after reaching new local highs around the $110,000 mark. The recent price movement shows a string of red candles, indicating a significant loss of momentum from the highs in the price performance over the last few days. This behavior is normal as the market needs to calm down following a strong rally. However, the emerging candlestick pattern suggests a possible reversal. A notable lower wick on the most recent daily candle indicates that buying pressure is returning as Bitcoin tests the 26 EMA support zone. This long-tailed doji-like pattern suggests that buyers are prepared to defend these levels as sellers are losing control. If this reversal pattern holds, Bitcoin might swiftly rebound to retest the $110,000 range in the upcoming sessions, if not surpass it. However, if support at the 26 EMA fails, there is a genuine chance of a deeper retracement toward the 50 EMA, which is around $95,000. This would allow the market to shake out weaker players and reestablish a stronger foundation for future attempts to reach new highs. As of now, the reversal candlestick offers hope that Bitcoin’s bullish trend is still going strong, but the coming days will be crucial. Traders should keep an eye on the price movement and volume levels surrounding the 26 EMA for confirmation.

Ethereum (ETH) is currently trapped in a narrow ascending channel, which has been gradually pushing prices higher. Despite its initial bullish appearance, this pattern is beginning to feel like a trap. ETH is currently trading at about $2,690 with resistance close to $2,850 and support at the $2,500 mark. The volume profile does not support a breakout, as volume has been gradually dropping over the past week, indicating a lack of trader confidence. This decreasing volume is concerning as it raises the possibility that the current channel is running out of steam. If ETH breaks below this channel’s lower trendline, we may witness a brief decline to the $2,400 region, with $2,100 being the next reasonable target. However, if ETH is able to break through the $2,850 barrier, it might mean that the market is finally waking up and getting ready for another leg higher. The larger context shows that ETH is still recovering from a protracted and agonizing downtrend, with the 50 and 100 EMAs displaying some compression around the current price levels. This is a classic indication of indecision, and ETH is currently trapped in this channel. Pay attention to those critical resistance and support levels, as ETH will probably set the tone for the next significant move once it exits this channel either upward or downward.