The cryptocurrency market has recently experienced significant turbulence, marked by a multi-billion dollar liquidation event that impacted institutional and retail investors alike. While some major assets like Bitcoin and Shiba Inu are beginning to show signs of stabilizing after substantial downturns, Ethereum appears to be in a more precarious position, lacking the typical indicators of a market bottom. This analysis delves into the current technical state of these prominent cryptocurrencies, offering insights into their potential short-term trajectories.
Bitcoin: Signs of Exhaustion and Stabilization
Following a massive $1.4 billion liquidation wave that saw Bitcoin plummet from $110,000 to the mid-$80,000s, the market is finally showing the first clear indications of seller fatigue. A sharp recovery from oversold conditions, coupled with a noticeable slowdown in selling volume and buyer intervention, suggests that the worst of the chaos may be over. Bitcoin has found a stabilization zone between $83,000 and $85,000. If it can hold this range, the next likely phase involves retesting broken moving averages, currently situated between $96,000 and $105,000. While a V-shaped reversal is unlikely, a gradual grind higher is anticipated as sellers lose control, though a retest of the lows remains a risk if critical support breaks.
Ethereum: A Troubling Trajectory
In stark contrast to Bitcoin and Shiba Inu, Ethereum's chart presents a concerning lack of bottoming signals. While other assets display early signs of a rounding bottom — characterized by strong selling, a rebound candle, and a curved stabilization — Ethereum continues its steep, nearly linear downslope without any noticeable leveling or curvature. This absence of a "bend" suggests that sellers still hold significant control, and there's no clear evidence of buyers consciously absorbing the supply. ETH has broken below all major moving averages (20-, 50-, 100-, and 200-day) and its bounce from oversold conditions has been shallow and feeble. This technical weakness indicates a high probability of continued decline, potentially leading to a sharper drop as trapped long positions panic-sell.
Shiba Inu: Early Glimmers of a Bottom
After weeks of substantial declines, Shiba Inu is now exhibiting the first signs of structural stabilization, with its price action creating a rounding pattern near its lows. This shift, accelerated by an oversold Relative Strength Index (RSI), suggests that the downtrend may be losing momentum. The lack of immediate follow-through sales after hitting oversold levels indicates waning seller motivation. Investors should anticipate a gradual stabilization rather than an immediate V-shaped recovery, as rounding bottoms require time for sentiment to shift. Holding the $0.0000075-$0.0000080 support band is crucial for establishing the credibility of this rounding structure and signaling an end to the immediate downtrend, paving the way for a potential recovery towards higher resistance levels.
