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This Hidden Ethereum (ETH) Support Is Extremely Important

Tue, 10/10/2023 - 1:00
This Hidden Ethereum (ETH) Support Is Extremely Important
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Ethereum, the second-largest cryptocurrency by market capitalization, has been experiencing a challenging phase. The once-thriving DeFi and NFT sectors, which significantly contributed to Ethereum's meteoric rise, are currently subdued. The buzz and activity around these sectors have dwindled, leading to a noticeable decline in Ethereum's trading volume.

Furthermore, the concept of Ethereum as "ultrasound money" is facing scrutiny. Touted as a deflationary asset due to the EIP-1559 upgrade, which introduced a mechanism to burn a portion of the transaction fees, Ethereum's current state suggests otherwise. The deflationary pressures are not as pronounced as many had anticipated, leading to questions about its long-term economic model.

Source: TradingView

Amid these challenges, Ethereum has found itself at a relatively unnoticeable support level. This support, often overlooked in favor of more prominent price points, could play a pivotal role in determining ETH's trajectory in the coming weeks. If Ethereum manages to hold above this level, it could provide the foundation for a potential rebound. Conversely, a breach below could exacerbate the bearish sentiment.

The importance of this hidden support is magnified by the broader market context. With the overall trading volume on the decline and the DeFi and NFT landscapes not providing the bullish impetus they once did, Ethereum needs all the support it can get, both technically and sentimentally.

Shiba Inu remains oppressed

Shiba Inu (SHIB) has been facing a challenging period recently. The token's price dynamics have been less than favorable, raising concerns among its vast community of holders.

At the time of writing, Shiba Inu is trading at $0.00000693, a value that is significantly suppressed from its all-time highs. A detailed analysis of its price movement reveals that SHIB is currently moving below the 21-day Exponential Moving Average (EMA), a technical indicator that often provides insights into an asset's momentum. The position below this EMA suggests that SHIB is heavily suppressed and is currently in a downtrend.

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The downtrend is further emphasized by the lack of attempts from the token to break through and reclaim higher levels. The 21 EMA acts as a dynamic resistance, and SHIB's consistent position below it indicates a strong bearish grip on its price action.

Another concerning factor for Shiba Inu's potential recovery is its trading volume. A robust trading volume often signifies strong interest and activity around an asset, which can be a precursor to significant price movements. However, in the case of SHIB, the trading volume is at an extremely low level. This diminished trading activity suggests a lack of buying interest, which can further dampen any hopes of a swift price recovery.

Solana remains solid

Not all setbacks are created equal, and Solana's (SOL) recent dip in price is one that should not raise too many alarms for investors.

A detailed analysis of Solana's price reveals that the cryptocurrency is still one of the strongest performers on the market. Currently trading at $22.93, Solana has only seen a slight decline of a little over 7% in the past few days. This is a modest dip, especially when compared to other assets in the crypto space that have experienced losses of around 15% from their recent highs.

The resilience of Solana can be attributed to its robust ecosystem and the growing interest in its platform. As decentralized applications (dApps) and DeFi projects continue to find a home on Solana, the demand for SOL, its native token, remains high. This demand acts as a buffer, preventing drastic price drops and ensuring stability even in turbulent market conditions.

Another positive sign for Solana is the decreasing trading volume. While a drop in trading volume can be a cause for concern in some scenarios, in this case, it is a silver lining. The reason being that Solana is currently bearish on more local time frames but remains bullish on longer-term charts. A decrease in trading volume during a short-term bearish phase can indicate a lack of strong selling pressure, which can pave the way for a potential rebound.


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