The cryptocurrency market is currently grappling with significant headwinds, as key digital assets like Ethereum, Shiba Inu, and Bitcoin show alarming signs of weakening momentum and potential downtrends. A combination of technical resistance, dwindling trading volumes, and a noticeable lack of fresh capital inflows is painting a cautious, if not outright bearish, picture for the near future.
Ethereum's Bearish Signals
Ethereum is struggling to maintain its footing above the crucial $4,000 mark, with recent price action suggesting a problematic double top formation on the daily chart. This classic bearish reversal pattern, coupled with rejections near $4,200 and decreasing relative strength, indicates a rapid waning of upward momentum. Key technical indicators, such as the 50-day and 100-day Exponential Moving Averages (EMAs), are converging above the current price, acting as strong resistance. If ETH fails to hold above $3,950-$4,000, it faces potential slides towards $3,800 and even $3,600, with the latter's break potentially validating a more extensive downward trend.
Shiba Inu Faces Further Decline
The popular meme token Shiba Inu appears to be on the brink of another significant correction, with its price action pointing towards a continuation of its downward trajectory and the concerning possibility of adding another zero to its valuation. SHIB's recent performance has been characterized by weak momentum, low trading volume, and persistent resistance from critical moving averages (50-, 100-, and 200-day EMAs). Structurally, the token has consistently formed lower highs since early September, signaling firm control by sellers. Without significant inflows or a speculative catalyst, a failure to hold the $0.0000095 support level could see SHIB fall to $0.000008, underscoring a bleak outlook for recovery.
Bitcoin's Stagnant Struggle
Even Bitcoin, the market leader, is caught in a difficult consolidation phase, struggling to break above the formidable $115,000 resistance level. Despite multiple attempts, BTC has been consistently rejected, indicating that buying pressure is losing steam. The market currently lacks clear directional strength, with trading volume declining and indecision prevailing between $112,000 and $115,000. A concerning lack of significant inflows, both from exchange and on-chain data, highlights investor caution and leaves the market without the necessary liquidity to overcome strong sell order clusters at $115,000. If Bitcoin cannot establish consistent movement above this threshold, a deeper retreat towards $110,000 or even $108,000 seems increasingly likely, potentially trapping late buyers hoping for a breakout.
