Ethereum (ETH) Bull Market Over? Shiba Inu (SHIB) Risks Adding Zero Rocket, XRP's Last Level Before $2

Ethereum has most likely entered a corrective phase, which could be the beginning of the end of the bull market. Ethereum has been gradually declining after reaching a peak of about $4,800, and the price action is displaying the first discernible signs of weakness since July.

Given that trading volume has decreased in comparison to earlier in the rally, the decline suggests that market momentum may be waning. Ethereum corrections following sharp rallies have historically tested important moving averages, and the 26-day EMA is currently the first crucial level to keep an eye on. A clean rebound prior to testing this zone would be a more convincing sign that buyers are still in control, but a drop toward this line would indicate a continuation of short-term selling pressure.

ETH/USDT Chart by TradingView'>

The larger bullish structure would hold up if ETH could bounce back above recent highs, rather than tagging the 26 EMA, indicating that this move is merely a brief cooling off. With the next layers of support located close to the 50 EMA and psychological round levels around $4,000, additional downside may become possible if the 26 EMA breaks decisively.

The more general question is whether the upward momentum of the cycle will end with this correction. Since long-term moving averages are still sloping upward, and Ethereum is currently trading comfortably above key support lines, it appears that the bull market is still going strong. But as Ethereum continues to decline, traders may grow increasingly wary, particularly as the market closes out derivative positions.

Shiba Inu at risk

Shiba Inu is once again close to adding a zero to its price. Following weeks of consolidation within an ascending triangle pattern, SHIB is currently close to losing the lower range, which could lead to more severe declines.The failure of SHIB to produce significant upward momentum is seen clearly on the daily chart. The token is continuing to retest the support line, rather than breaking higher, which indicates a weakening setup, even though the ascending triangle formation typically leans bullish. With today’s rejection, the likelihood of a breakdown is gradually increasing, and each bounce has been weaker than the one before.

Due to the absence of strong support zones until much lower levels, the move may accelerate rapidly, if SHIB breaks below the triangle’s support. SHIB would most likely be forced to add another zero to its price as a result of such a decline, returning it to valuations not seen since the early summer.Lower trading volumes and the absence of whale-driven support both increase the descending momentum and lessen the likelihood of a recovery. The risk is increased by the fact that SHIB’s performance is still trailing, leading cryptocurrencies like Ethereum and Bitcoin, which have at least maintained stronger trends.

XRP checks in

XRP is not feeling that well, as the asset is close to entering a critical state. The token is currently declining and in danger of breaking below its 50-day exponential moving average (EMA) after failing to maintain momentum above $3. Although this level has historically been used as a temporary buffer, the current situation indicates that it might not last for very long.

As XRP records a string of red candles, the market’s inability to maintain bullish sentiment is putting pressure on the 50 EMA. The next strong support is located much deeper in the $2.70-$2.75 range, and the $2.40 region, which is anchored by the 200 EMA if this level fails. A breakdown of this kind would wipe out most of XRP’s recent gains and expose the token to a possible retest nearer $2.00, a psychological level that will decide whether the larger bullish cycle holds up.

Curiously, volume data presents a somewhat different picture, even though price action appears fragile. Indicating that bears are not fully committing to the sell-off, trading volumes have been continuously dropping during the downward move. This lack of conviction allows for a potential rebound, but XRP runs the risk of crashing lower toward significant support levels in the absence of an abrupt spike in demand.

XRP needs to regain the $3.00 mark with significant buying pressure if bulls wish to regain control. If this is not done, there may be a chance for a more severe correction, with $2.00 acting as the final key level before sentiment turns sharply against the asset.

Source: CryptoSlate