Ethereum faces critical support test
Ethereum is currently trading around $4,185, down more than 5% from the previous session. The cryptocurrency broke down from a symmetrical triangle pattern that had been forming for weeks, disappointing traders who were expecting increased volatility. The bearish move confirms resistance at $4,600 and has increased selling pressure significantly.
What’s interesting is the volume spike during recent red candles – it suggests sellers are firmly in control right now. The RSI has dropped below 40, entering bearish territory, though this could also indicate potential for a short-term relief bounce. Ethereum’s next important support sits at the 100-day moving average around $3,880. If that fails, the 200-day average at $3,378 becomes the main downside target, which would erase much of the summer rally.
I think the $4,000 level is crucial here – it’s both psychological and technical. Losing this support could trigger a rapid test of $3,800 and significantly change market sentiment. Bulls need to push ETH back above $4,400 to restore confidence, but current momentum suggests further downside is more likely.
Shiba Inu shows resilience despite pressure
Shiba Inu is trading near $0.0000122 after briefly breaking below its own symmetrical triangle pattern. The interesting thing here is the lack of consistent selling pressure. On-chain data shows no significant increase in exchange inflows, meaning holders aren’t rushing to sell their positions.
The daily chart shows SHIB consolidating between major moving averages, with the 200-day EMA around $0.0000100 providing broad support. Volume during recent declines hasn’t spiked dramatically, which suggests capitulation hasn’t occurred yet. The RSI at 41 indicates the market is somewhat oversold, potentially fueling a short-term recovery rally.
If SHIB can regain the $0.0000130-$0.0000135 range, bulls might regain momentum. A move to $0.0000140 would help restore general confidence. While $0.000020 might seem distant, it remains accessible if the market stabilizes in Q4. SHIB has historically shown the ability to move quickly when demand increases, and the absence of strong selling signals supports this possibility.
Dogecoin maintains underlying strength
Dogecoin is trading around $0.23 after testing resistance near $0.30. Despite the decline, DOGE has found support at the 50-day Exponential Moving Average, which has historically served as a launchpad for recoveries. The larger bullish structure remains intact as long as this level holds.
Volume trends indicate selling pressure hasn’t been particularly intense. While there are more red candles, the lack of panic selling allows buyers to reenter the market. DOGE’s pattern of higher lows shows the market is still defending important price zones, suggesting it hasn’t completely surrendered its summer gains.
The RSI at 45 is approaching neutral territory, reducing the risk of an overheated market and supporting the case for a recovery bounce. If DOGE can reclaim $0.25 soon, the path toward $0.28-$0.30 resistance could open quickly. A breakout from there might eventually test $0.32.
What stands out about Dogecoin is its resilience compared to other assets. Despite volatility, it maintains its trend above long-term averages like the 200 EMA, indicating the underlying value base remains intact. This hidden strength could position DOGE well for future moves higher.
