Shiba Inu (SHIB) appears to be on the verge of a potentially explosive rally, especially if Ethereum climbs to $4,000—a possibility currently gaining momentum according to Polymarket predictions. Since SHIB is built on Ethereum and often mirrors its price movements, this trend could serve as a powerful bullish catalyst for the meme token.
📈 Shiba Inu Forms Inverse Head and Shoulders – A Classic Bullish Reversal Signal
Between March and May, SHIB formed an inverse head-and-shoulders pattern on the daily chart—one of the most reliable signals of an impending trend reversal. The "head" sits at $0.000010, with the "shoulders" at $0.00001150. Currently, SHIB is attempting a breakout above the neckline near $0.00001565.
As of May 23, SHIB is trading around $0.0000156, more than 52% above its yearly low. If it successfully breaks through this neckline, the move could potentially drive SHIB back to its November 2024 high of $0.0000333.
SHIB has already crossed above the 50-day weighted moving average (WMA) and is approaching the 200-day WMA, adding further confidence to the bullish outlook.
🟣 Ethereum Strength Could Be SHIB's Launchpad – 43% Chance of $4,000
Polymarket data now shows a 43% probability that Ethereum will reach $4,000—its highest since early May. Just a few weeks ago, that probability was as low as 16%. With ETH currently trading near $2,660, it would require a 54% jump to hit $4,000. Given that ETH has already surged 92% from its April low, such a move isn't far-fetched.
Technical indicators also support the potential. Ethereum is on the verge of forming a “golden cross,” a bullish signal where the 50-day moving average crosses above the 200-day average. Meanwhile, a bull flag pattern is also emerging—another sign of potential continuation.
🐶 SHIB and ETH: A Historically Strong Correlation
Shiba Inu often mirrors Ethereum’s price action. When ETH rises, SHIB typically follows—and vice versa. For instance, between December 8 and April 8, SHIB fell by 70%, in sync with ETH’s drop from $4,080 to below $1,400.
This pattern isn’t unique to Ethereum. The same dynamic occurs in other ecosystems like Solana, where meme coins usually rise and fall alongside the main token.
🎯 Key Price Targets and Technical Structure for SHIB
If the bullish scenario plays out, SHIB could aim for:
🔹 $0.0000221 – 50% Fibonacci retracement
🔹 $0.00001945 – 61.8% Fibonacci retracement
🔹 $0.0000333 – December 2024 high (a potential 115% gain from current levels)
SHIB is currently in the second phase of an Elliott Wave cycle and appears ready to begin the third impulsive wave. A break above the neckline could lead to the full completion of this bullish wave structure.
However, a drop below key support at $0.000012 would invalidate the bullish thesis, opening the door to a possible decline toward the 2024 low of $0.0000108.
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