U.TODAY – The second-largest cryptocurrency by market capitalization is experiencing a challenging phase. The once-booming DeFi and NFT sectors, which significantly contributed to Ethereum’s rapid growth, are currently in the doldrums. Movement and activity in these areas has decreased, leading to a significant drop in Ethereum trading volume.Thank you for reading this post, don't forget to subscribe!
Additionally, Ethereum’s concept of “ultrasound money” is facing scrutiny. Promoted as a deflationary asset due to the EIP-1559 upgrade, which introduced a mechanism to burn a portion of transaction fees, Ethereum’s current state suggests otherwise. Deflationary pressures are not as pronounced as many had anticipated, raising questions about its long-term economic model.
Source: Amidst these challenges, it has found itself at a relatively noticeable level of support. This support, which is often ignored in favor of more key price points, could play a key role in determining the trajectory of ETH in the coming weeks. If Ethereum manages to hold above this level, it could provide the basis for a potential rally. Conversely, a breach below could increase bearish sentiment.
The importance of this hidden support is heightened by the broader context. With overall trading volumes declining and the DeFi and NFT landscape not providing the same bullish momentum as before, Ethereum needs all the support it can get, both technically and emotionally.
Shiba Inu Remains Oppressed/h2 (SHIB) has been facing a challenging period recently. The price dynamics of the token have been less than favourable, leading to concerns among its vast community of holders.
At the time of writing, Shiba Inu is trading at $0.00000693, a price that is well below its all-time high. A detailed analysis of its price movement shows that SHIB is currently trading below the 21-day exponential moving average (EMA), a technical indicator that often provides information about the momentum of an asset. The position below this EMA shows that it is quite suppressed and is currently in a downward trend.
The downtrend is further emphasized by the token’s lack of efforts to move higher and retest higher levels. The 21 EMA acts as a dynamic resistance, and SHIB’s persistent position below it indicates a strong bearish hold on its price action.
Another worrying factor for Shiba Inu’s potential recovery is its trading volume. A strong trading volume often indicates strong interest and activity around an asset, which can be a harbinger of significant price movements. However, in the case of SHIB, the trading volume is at an extremely low level. This reduced trading activity indicates a lack of buying interest, which could further weaken any hopes of a quick price recovery.
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Solana remains solid/h2 Not all shocks are equal, and the recent decline in the (SOL) price is one that should not cause too much concern for investors.
A detailed analysis of Solana price shows that the cryptocurrency is still one of the strongest performers in the market. Currently trading at $22.93, Solana has seen a modest decline of just over 7% over the past few days. This is a modest decline, especially when compared to other assets in the crypto sector, which have experienced a loss of approximately 15% from their recent highs.
Its resilience can be attributed to its strong ecosystem and the growing interest in its platform. As decentralized applications (dApps) and DeFi projects continue to find a home on Solana, demand for SOL, its native token, remains high. This demand acts as a buffer, preventing large drops in prices and ensuring stability even in turbulent market conditions.
Another positive sign for Solana is the decreasing trading volume. While a decline in trading volume may be a cause for concern in some scenarios, in this case, it is a silver lining. This is because Solana is currently bearish on more local time frames, but remains bullish on longer-term charts. A decrease in trading volume during a short-term bearish phase may indicate a lack of strong selling pressure, which could pave the way for a potential rebound.
This article was originally published on U.Today