Ethereum is currently declining further, entering a short-term downtrend, and after breaking below the $3,000 mark, its recent bullish rebound momentum may have come to an end. Earlier this month, Ethereum strongly broke above the 200-day moving average, marking the first time in months that it surpassed this level, but the price trend quickly turned negative.
The failure of the descending wedge pattern is the most obvious warning signal. Bullish continuation patterns are usually considered to be descending wedges. However, ETH's failure suggests that this pattern is more like a reversal trap rather than consolidation. This failure indicates that the market is weakening rather than experiencing a healthy correction.
Ethereum is currently losing support at the 200-day moving average (EMA) at $2,438. This intensifies the bearish pressure. With recent daily closes below this key technical level, it has turned from a support level to a resistance level, and the outlook for the coming days is bleak. If the next strong support level fails to hold, it is likely to test $2,000 again, which is between $2,200 and $2,170. Additionally, the volume trend is not optimistic.
Despite a few bearish candles over the past few trading days, bullish buying has not surged to offset the selling. This proves one thing: confidence is declining. The macro trend for Ethereum is still ongoing, but if this localized decline does not quickly stop, the market may meet the same fate.
The rebound of ETH is so weak that the bulls are ill-prepared for actual resistance, as can be seen from the failure to maintain the bullish structure so quickly after breaking the 200 EMA.
XRP is in a critical state. The price of XRP is dangerously approaching the 26-day moving average (EMA), which is a key dynamic support level, indicating an important moment is imminent. The downside target is between $2.18 and $2.04, and if the asset breaks below the current trading level of $2.31, a more severe decline may be on the horizon.
After a brief rise, the bullish momentum that drove XRP up to the $2.80 mark has clearly stalled. More concerning is the continued decline in trading volume, indicating that buyer interest is waning. Without a substantial inflow of funds or a revival of market sentiment, XRP may struggle to maintain its current price, let alone rise in the short term.
Many bulls are targeting the important psychological resistance level of $3.00, but recent trends have invalidated it. As this path is now fundamentally blocked, XRP is consolidating within a smaller range, with each rebound looking weaker than the last. From a technical perspective, if the 26-day moving average is breached, the asset may enter a sharper correction.
Although the downtrend may slow due to the confluence of support near $2.18, if this support level also breaks, the door to $2.00 will reopen. Market sentiment and on-chain activity also reflect this decision-making pattern stage. While many traders are waiting for clues, very few are currently prepared to invest capital. Until trading volume rebounds and prices stabilize above higher support levels, the trend will remain biased downward.
Shiba Inu is being cut down. After seemingly successfully breaking the 100-day moving average, the Shiba Inu index is once again facing downward pressure. In early May, the asset broke this important moving average, sparking market expectations for a long-term rise. However, bullish momentum quickly faded, and SHIB subsequently saw a significant retracement, falling below the support level of its brief breakout.
The lack of confidence in SHIB is a bigger issue, as evidenced by its failure to break above the 100-day moving average (currently trading around $0.000015). Although trading volume increased during attempts to rise, there was no follow-up buying. Due to a surge in selling pressure, the token has currently retraced to the $0.000014 level, with bearish momentum intensifying.
Just above the failed breakout area, the 200 EMA (black line) is showing a clear resistance level in the chart structure. This resistance has now become a significant obstacle for SHIB, and without strong fundamentals or speculative catalysts, it will be difficult for SHIB to break through. Shiba Inu remains one of the most well-known meme coins in the market, but its utility is still under debate.
The market has not sustained confidence in the ecosystem expansion promised by developers (e.g., Shibarium and token burns). On the other hand, SHIB's price still fluctuates within the typical boom and bust pattern driven by speculation. Any move below the current support level (between $0.0000135 and $0.0000130) could pave the way for a drop towards local lows.
