The performance of Ethereum (ETH), the second largest cryptocurrency by market capitalization, is currently raising some serious questions. ETH has recently fallen below the $1,850 price level, which has triggered a further downfall, presenting a potentially gloomy picture for the near future.
Historically, Ethereum has shown a tendency to bounce back from significant support levels. However, the current scenario seems different. After falling below $1,850, the next support level is at the 200-day Exponential Moving Average (EMA), indicating that Ethereum might not see a bounce until it reaches the $1,785 price level.
The volume of ETH traded is also showing a downward trend, which typically indicates reduced market activity, and could signify bearish sentiment among investors. The descending volume, combined with the declining price, indicates a bearish market phase for ETH and could lead to increased selling pressure.
This recent performance is not taking place in a vacuum. Market sentiment has been swayed by the recent rumors of the Department of Justice (DOJ) launching a probe into Binance, one of the world's largest cryptocurrency exchanges. This investigation has added an extra layer of uncertainty to an already volatile market.
XRP falls under pressure
XRP has failed to maintain its position above the 21-day Exponential Moving Average (EMA). This misstep could potentially lead to a further price depreciation of approximately 7%.
After a promising rally, XRP unfortunately failed to maintain its bullish momentum and fell below the 21-day EMA. This event is typically perceived as a bearish signal by traders, indicating a possible downward trend in the near future. As a result, XRP is now making its way toward the 50-day EMA, a crucial support level that stands at a price threshold 7% lower than the current level. If this support fails to hold, the consequences could be even more severe for XRP's price.
However, all is not lost for XRP. There is a glimmer of hope hidden within the trading volume data. The current volume is descending, which in most cases signifies an upcoming trend reversal. In XRP's situation, where the coin is facing downward pressure, a decreasing volume could potentially act as a positive catalyst, leading to a halt in the bearish trend and possibly igniting a new upward trajectory.
It is worth noting that while the fall below the 21-day EMA and the descent toward the 50-day EMA suggest bearish momentum, these are just indicators, and actual market movements can vary based on a multitude of other factors.
Shiba Inu remains solid
Recently, SHIB has returned to the upper border of an ascending triangle, a pattern often seen as a bullish signal in the world of technical analysis. In many cases, this upper border acts as a strong support line once breached, offering a platform for prices to bounce back from.
In the case of SHIB, this setup might hint at a potential acceleration of the rally. If the support at this level holds, and the token manages to bounce off of it, SHIB could once again find itself on an upward trajectory. Given the resilience of this meme coin and the momentum it has shown in the past, this scenario is not entirely implausible.
As of now, SHIB is consolidating around the $0.000008 level, indicating a period of relative stability after recent market volatility. Consolidation periods can often precede significant price moves, making this a critical juncture for the token.
On-chain indicators also seem to support the potential for a bounce. Despite the uncertainty that often accompanies such consolidation phases, SHIB has shown strength in the form of robust trading volumes and consistent holder activity.