Key Points
- Ethereum wipes out all ETF gains
- Shiba Inu approaches critical lows
- Solana drops to $135, activates critical support
- Bearish market sentiment persists
The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has dropped in price down to pre-ETF rumor levels.
After an initial surge from the ETF news, Ethereum failed to maintain its momentum. ETH is currently trading at $3,205 which is far lower than recent highs — indicative of a lack of sustained buying interest.
There are several factors contributing to this downturn. Throughout the year there have been minimal advancements within the Ethereum ecosystem; no major updates or innovations have been made that would drive up demand or utility.
CRYPTO BREAKING NEWS
Ethereum (ETH) Lost All ‘ETF Gains,’ Shiba Inu (SHIB) on Its Way to Add Zero, Solana (SOL) Reaches $135, Critical Support Activated. Most of gains collected in past are lost, and it is not clear when we are getting them back check us out @… pic.twitter.com/yWODDtViS1— InnovatekMobile (@Neome_com) July 5, 2024
Consequently, both new and existing investors have become disinterested thereby further suppressing market activity.
Technical analysis paints a bleak picture as well — Ethereum has fallen below crucial support levels at the 50 EMA and 100 EMA indicating a bearish trend.
The next major support resides around the 200 EMA which is currently priced at about $3,090; if this downward trajectory continues it may soon be tested. The Struggle Continues for Shiba Inu
Shiba Inu (SHIB) has also taken a sizable hit mostly due to Bitcoin falling below $60k. This drop caused panic selling across many tokens including SHIB; therefore taking it down heavily with them.
Currently trading at $0.00001565 per coin, Shiba Inu sits way down from recent highs — searching for support in times of increased volatility.
Technical indicators are not looking too good for the asset either; SHIB is trading below key moving averages signifying more bearish movement ahead.
With RSI being at 27 this indicates that it’s oversold but without significant support levels recovery seems unlikely.
Market sentiment is very negative which is making things worse for SHIB, people are more cautious about their investments now and reluctant to enter a declining market.
Critical Support Activated by Solana
Solana (SOL) has seen heavy losses as well; currently priced at $135. Despite having strong fundamentals and an expanding ecosystem, Solana still fell victim to the overall market trend. The activation of critical supports has helped prevent steeper drops but caution remains widespread.
Performance-wise Solana has benefited greatly from its technical infrastructure robustness along with DeFi and NFT adoption growth. Unfortunately, these positives were not enough to offset bearishness in the wider markets.
Market Sentiment and Future Outlooks
The general feel throughout the entire market right now is bearish; this was brought on by Bitcoin’s massive drop coupled with the subsequent effect on altcoins like Ethereum, Shiba Inu and Solana.
This lack of faith from investors stems from somewhere deep within themselves which leads them into being more careful when trading during downtrends.
For Ethereum to regain momentum it needs to introduce significant updates or innovations that can attract investors back onto its platform. Shiba Inu will need to find solid support levels if it wants any chance of stabilizing its price and winning back investor confidence.
Solana should celebrate maintaining those key support levels plus growing its ecosystem further because they are what brighten up its prospects amidst such times as these.
It’s advisable for traders within this uncertain environment where we currently find ourselves in, to do thorough research while keeping tabs on what’s happening around us vis-à-vis world events etcetera since crypto-markets always have volatile moments so one must be cautious too!
