Ethereum Drops 51% From Peak, Faces $1,000 Test

The cryptocurrency market is currently at a critical juncture, with significant volatility affecting major players such as Bitcoin, Ethereum, and Shiba Inu. Ethereum is under considerable pressure, with its price hovering around $1,960, down from its cycle peak of approximately $4,000. The formation of lower highs and lower lows since January indicates a bearish trend. Technical indicators, including the 50, 100, and 200-day Exponential Moving Averages (EMAs), suggest that Ethereum is trading below these key levels, further confirming the bearish sentiment. The Relative Strength Index (RSI) shows an oversold position, indicating rising selling activity and investors exiting their positions.

If Ethereum fails to break through the $2,000 resistance area, experts predict it could drop below $1,000, potentially falling to $800–$900, which would be its lowest level in nearly three years. However, a double-bottom pattern could create a relief rally surpassing $2,000 if buyers intervene during this period.

In contrast, Shiba Inu (SHIB) has shown resilience against broader market declines. After hitting support at $0.000011, SHIB has recovered well and is currently trading between $0.000012 and present levels. The increase in trading volume indicates ongoing investor enthusiasm for the meme coin. The Relative Strength Index has moved up from its oversold position to reach 45, suggesting better market perception. Technical resistance lies between $0.0000124 and $0.0000130, with potential higher resistance levels at $0.0000155 and $0.0000171. However, if resistance is not breached, another retest of the $0.000011 support might occur.

Bitcoin's current position is pivotal for the overall market direction. If the price surpasses $85,000, it could signal a bullish trend. Conversely, a drop towards $75,000 would indicate a bearish outlook. Ethereum's survival above $1,000 depends on its ability to hold the current resistance level, while Shiba Inu demonstrates potential growth opportunities if it surpasses its key obstacles. Investors should closely monitor macroeconomic factors, regulatory developments, and trading volume trends to navigate the volatile market. Strategic risk management will be crucial in the coming weeks as the market faces key turning points.

Market participants need to track essential price points, general economic indicators, and regulatory data. With high volatility, strategic risk management is crucial for navigating the uncertain landscape. The resilience of SHIB shows that investors maintain a strong interest in it, while Ethereum's struggle highlights the need for careful analysis and risk management. The future direction of the cryptocurrency market will depend on how these key players perform in the face of current challenges.