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Ethereum’s recent rally has stopped and ETH price stabilizes after a substantial rise. This disruption leads investors to wonder: When will Ethereum’s price rally resume? Analysis of the chart and recent headlines gives us information about possible future scenarios.
The Ethereum chart indicates a recent pullback after a sharp rise in price, causing the market to take a breather. This consolidation phase is healthy as it allows the market to establish new support levels. Ethereum price is still well above its 50-day and 100-day moving averages, suggesting that the overall trend remains bullish. The Relative Strength Index (RSI) has pulled back from overbought levels, which could lead to another price surge.
Bullish scenario
If Ethereum holds its support level and avoids falling below the moving averages, the price may be set for another rally. This could be driven by increased adoption and positive market sentiment. Watch for a tightening of the Bollinger Bands, followed by a break above the upper band, which could signal the start of another bullish phase.
Bearish scenario
Conversely, a break below the moving averages could signal a bearish reversal. Increased selling pressure and negative market sentiment could drive the price down. A bearish crossover on the MACD could confirm this, suggesting it might be time to prepare for a possible downtrend.
Recent data indicates that Ethereum’s burn rate has reached steady growth, surpassing issuances six months after the Merge upgrade, contributing to its deflationary aspect. Despite this, Ethereum’s daily burn rate hit a seven-month low on March 12, showing a drop of over 89% from all-time highs. Such dynamics in the burn rate could influence the economics of supply and demand, potentially affecting the price.
Investors should watch for a continuation of the net burning trend, which could lead to decreased supply and higher prices if demand remains stable or increases.
Shiba Inu joins the party
The meme coin frenzy continues as Shiba Inu (SHIB) steals the spotlight with its recent price movements, sparking discussions about whether it can breach the $0.00001 threshold this week. Amid massive transfers by Binance, a deep technical dive is essential to evaluate SHIB’s potential.
Analyzing the SHIB price chart, we see a significant increase in its value, with the token challenging previous resistance levels. The Moving Average Convergence Divergence (MACD) is showing a positive trend, with the blue MACD line well above the signal line, indicating strong bullish momentum. The Relative Strength Index (RSI), although not in overbought territory, is trending upward towards the 70 mark, which could signify increasing buying pressure.
A crucial factor to watch is the breakout of the 50-day and 100-day moving averages, which SHIB has surpassed, suggesting a strong uptrend. The volume bars align with the price increase, further confirming the bullish stance among traders. Additionally, Bollinger Bands are expanding, which typically denotes increased market volatility and potential for large price movements.
The psychological mark of $0.00001 is in sight for Shiba Inu. For a sustained move above this level, SHIB would need to maintain its current momentum and see a continued influx of buying volume. If the price can close above this level on the daily chart, it could confirm the bullish breakout, which could lead to further gains.
Recent SHIB transfers by Binance have added to the speculative fire. These large-scale moves can be indicative of institutional interest or large traders taking positions, which in turn can lead to dramatic price movements.
SHIB’s current technical setup is promising, with the potential to reach and surpass the $0.00001 mark. However, investors should be cautious as meme coins can be very volatile and sensitive to market sentiment. Keeping an eye on the aforementioned technical indicators and news of large transfers will be key in determining whether SHIB can maintain its upward trajectory.
