The cryptocurrency market is currently at a pivotal juncture, with significant support levels undergoing scrutiny and the potential for a substantial downturn looming. While Ethereum is facing pressure and may test the $3,000 mark, the notion that it will plummet to $2,000 seems increasingly improbable.
Recent analysis reveals that Ethereum has dropped from a local peak of approximately $4,800 to around $3,000, encountering resistance at both the 50-day and 100-day moving averages. The critical moment now lies in its interaction with the 200-day moving average, which has historically served as a pivotal trend line. Currently, Ethereum has not significantly dipped below this level.
The relative strength index (RSI) for Ethereum is near 32, approaching oversold territory but not quite there. Historically, similar RSI conditions in 2024 and 2025 have led to either consolidation or recovery for ETH. What we are observing now is a pattern of market fatigue rather than a panic-driven collapse. Importantly, sell-side volume has been decreasing, a sign that typically precedes a recovery rather than a catastrophic crash. If the market stabilizes, it could enable bullish momentum as selling pressure diminishes.
On the other hand, Shiba Inu is currently trading around $0.000008, which is far from alarming. This level has been consistently revisited in past trading cycles, showcasing Shiba Inu”s ability to rebound from similar price points. The recent price action does not indicate a crisis but rather a cyclical return to a level where resilience has been demonstrated. The token has shown the capacity to recover from comparable zones, particularly following accumulation phases characterized by low trading volume.
As for Bitcoin, its recent fall below the psychological $100,000 mark has triggered a wave of panic in the market. However, there is a clear support level around $84,273 that could serve as a critical floor for this current downtrend. This level has previously acted as a structural low and has not been impacted by the recent market turmoil.
Currently trading near $91,000, Bitcoin is navigating through key moving averages, including the 50-day, 100-day, and 200-day indicators. The RSI is hovering around 28, suggesting it is in deep oversold territory. Although sell-off volume is increasing, there hasn”t yet been a capitulation candle, indicating that the market may still be searching for a bottom. The most technically sound reversal point appears to be around $84,273, with the potential for a rebound occurring between $88,000 and $84,000.
Should Bitcoin breach this critical support level, it could lead to a significant shift in market dynamics, pushing the cryptocurrency into a phase characterized by more severe declines. However, as it stands, the current market conditions suggest that while things look grim, a definitive collapse is not yet a certainty.
