Presently, market doesn’t look particularly favorable for Ethereum, Solana, or Shiba Inu in the short term. All three are struggling with critical support levels and face the risk of further corrections if buyers do not step in. However, the long-term outlook could shift positively if these assets manage to hold or reclaim their respective support levels and broader market conditions improve.

Ethereum Breaks a Critical Support Level

Ethereum has slipped below the 50-day Exponential Moving Average (EMA), a pivotal technical benchmark known for supporting bullish momentum. This breach is a significant development, suggesting that the asset is at a crossroads. The failure to maintain this level raises questions about Ethereum’s ability to uphold its bullish trend and sustain its recent recovery, potentially exposing it to further downside risks.

When a key support level like the 50 EMA is lost, the broader market structure begins to weaken, opening the door for bearish dominance. The Relative Strength Index (RSI), a crucial momentum indicator, shows a decline and has fallen into neutral territory.

This suggests that buying pressure has diminished significantly, aligning with Ethereum’s downward price movement. If the 50 EMA is not swiftly reclaimed, Ethereum may head lower, testing the 100 EMA near $3,100, a critical interim support.

Should the asset fail to hold at the 100 EMA, the sell-off could intensify, driving prices toward the 200 EMA at $3,044. This is regarded as the last major support before Ethereum risks a deeper correction.

Alternatively, the price may consolidate between $3,100 and $3,400 if no immediate breakout occurs. Such consolidation would indicate a period of uncertainty as market participants await stronger signals or catalysts to push Ethereum decisively in either direction.

A quick recovery above the 50 EMA, combined with an uptick in trading volume, could restore bullish momentum. In this scenario, Ethereum could aim for $3,800, with $3,500 serving as a critical resistance level. However, the next trading sessions will be crucial in determining whether Ethereum can reclaim its upward trajectory or faces further declines.

Recovering the 50 EMA is essential to halt the current selling pressure. Without sufficient buying support or positive market sentiment, Ethereum risks entering a prolonged corrective phase. The current inflection point will play a significant role in shaping Ethereum’s outlook for the coming months, as its ability to recover could dictate its trajectory for the next year.

Solana Teeters at Key Support

Solana is approaching a critical level as its price nears the 200 EMA, which is currently positioned around $175. Historically, this technical level has acted as a strong defensive barrier against bearish trends, and its ability to hold could determine whether Solana stabilizes or succumbs to further declines after a prolonged downturn.

The 200 EMA often serves as a line in the sand for market participants. If Solana can maintain this level, it may signal the possibility of a reversal or, at the very least, a period of price consolidation. This consolidation could give Solana the opportunity to stabilize before attempting a recovery. A successful rebound from the 200 EMA could see prices challenge resistance levels at $195 and $215, offering a chance for recovery.

However, rising selling volume and the asset’s prevailing downtrend cast serious doubts on its ability to hold this critical support. Should Solana fail to defend the 200 EMA, the next significant support level lies around $150. A break below $175 could trigger accelerated selling, pushing Solana into previously untested price zones for this cycle. This would likely prolong its recovery process and further undermine investor confidence.

Although the RSI signals oversold conditions, hinting at the potential for a relief rally, the lack of strong buying volume remains a concern. If buyers do not step in soon, the bearish sentiment could dominate, leading to deeper price declines. The coming days will be crucial in determining Solana’s trajectory, with the 200 EMA acting as the last line of defense.

Traders should closely monitor the $175 level, paying attention to shifts in volume and RSI trends to gauge market sentiment. Solana’s future largely hinges on its ability to retain this key support level. Failing to do so could lead to a prolonged period of weakness, while holding the 200 EMA could spark hope for a recovery.

Shiba Inu Approaches a Turning Point

Shiba Inu is at a critical juncture as its price hovers near the 200 EMA, a level often regarded as a benchmark for long-term trend direction. Trading around $0.000020, this zone reflects the token’s struggle to sustain momentum following its recent rally. It also highlights the importance of this level as a support line that could determine the next phase of SHIB’s price movement.

The breach of higher moving averages indicates that SHIB has entered a bearish phase, raising doubts about its ability to stage a short-term recovery. The retreat toward the 200 EMA signals a significant reversal in the asset’s prior upward trajectory, underscoring that selling pressure has overtaken speculative optimism.

If SHIB drops below this key level, it could face further declines, targeting $0.000018 or even $0.000016, marking a continuation of the bearish phase.

On the flip side, holding above the 200 EMA and rebounding to $0.000022 could reignite interest among buyers and offer a reprieve for the token’s battered price. Such a move could reestablish SHIB’s potential for a fresh rally, signaling a renewed attempt to reclaim its bullish momentum. At this point, the 200 EMA serves as both a potential bottom and an opportunity for the asset to rebuild confidence.

If speculative interest resurges, SHIB could resume its upward trajectory. However, a lack of buyer activity may exacerbate the bearish sentiment, leading to further declines and eroding investor confidence. The token’s trajectory in the days ahead will be critical in determining whether it continues to decline or sets the stage for a recovery.

Traders should carefully monitor price action near the 200 EMA, focusing on changes in volume and RSI trends for clues about market sentiment. Whether SHIB’s future narrative is one of recovery or continued decline will hinge on its ability to defend this pivotal support level and attract renewed interest.

Overall Market Sentiment

The market for these coins seems to be in a precarious state, with bearish momentum outweighing bullish signals in the short term. Recovery is possible, but it depends on several key factors, including:

Volume and Participation: Increased trading volume, particularly on rebounds, is critical to confirm recovery.

Macro Sentiment: Broader market conditions, including economic factors and investor appetite for risk, will influence performance, and

Catalysts: Positive developments, such as upgrades, partnerships, or favorable macroeconomic shifts, could help reverse sentiment.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Daily Addaa’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Daily Addaa is not responsible for any financial losses.