The recent rally has paused, with the ETH price leveling off after a significant spike. This pause leads investors to ask: When will the Ethereum price rally resume? An analysis of the chart and recent headlines provides insight into possible future scenarios.
The Ethereum chart shows a recent pullback after a sharp spike in price, with the market taking a breather. This consolidation period is healthy as it allows the market to establish new support levels, and the price is still well above its 50 and 100 day moving averages, suggesting that the overall trend remains bullish. The Relative Strength Index (RSI) has retreated from overbought levels, which may provide room for further price appreciation.
Bullish ScenarioIf Ethereum holds its support level and avoids falling below the moving averages, the price may prepare for another rally. This could be fueled by increased adoption and positive sentiment in the market. Watch for a narrowing of the Bollinger Bands, followed by a break above the upper band, which could signal the beginning of another bullish phase.
Recent data shows that the burn rate has been growing steadily, outpacing issuance six months after the Merge upgrade, contributing to its deflationary aspect. Despite this, Ethereum’s daily burn rate hit a seven-month low on March 12th, showing a decline of more than 89% from record highs. Such a dynamic in the burn rate could influence the supply and demand economics, and potentially affect the price.
Investors should watch for a continuation of the net burn trend, which could lead to lower supply and higher prices if demand remains steady or increases.
Shiba Inu Joins the Party
The meme coin frenzy continues as Shiba Inu (SHIB) grabs the spotlight with its latest price action, sparking discussion on whether it can break $0.00001 this week. Amid massive transfers from Binance, a technical deep dive is essential to evaluate SHIB’s potential.
Analyzing the price chart, we observe a significant rise in value, with the token challenging previous resistance levels. The Moving Average Convergence Divergence (MACD) shows a positive trend, with the blue MACD line well above the signal line, indicating strong bullish momentum. The Relative Strength Index (RSI), while not in the overbought territory, is trending upward toward the 70 level, which could indicate increasing buying pressure.
Crucially, the 50 and 100 day moving averages have been breached and SHIB has surpassed them, suggesting a robust uptrend. The volume bars are aligned with the price increase, further confirming the bullish stance of traders. In addition, the Bollinger Bands are expanding, which typically indicates increased market volatility and the potential for large price movements.
The psychological level of $0.00001 is in sight for the Shiba Inu. For a sustained move above this level, SHIB would need to maintain its current momentum and see a sustained influx of buying volume. If the price can close above this level on the daily chart, it could confirm the bullish breakout and potentially lead to further gains.
Recent SHIB transfers from Binance have added fuel to the speculative fire. Such large movements can indicate institutional interest or large traders taking positions, which in turn can lead to dramatic price movements.
The current technical setup for is promising, with the potential to reach and exceed the $0.00001 mark. However, investors should remain cautious as Meme coins can be highly volatile and sensitive to market sentiment. Keeping an eye on the aforementioned technical indicators and news regarding large transfers will be key in determining whether SHIB can maintain its upward trajectory.
