Shiba Inu (SHIB) is showing congestion amid the current uptrend, according to crypto analyst Tony M. Therefore, the analyst states that the possibility of another 20-30% decline is now on the table. Ethereum, on the other hand, is outperforming the broader cryptocurrency market as the much-anticipated Merge approaches. However, according to analysts, there is still a large drop in the big picture. We have compiled Shiba Inu and Ethereum analysis for our readers.
“SHIB price faces another jolt”
Shiba Inu bulls were rejected near the $0.00001200 zone. That’s why the current uptrend in SHIB is very turbulent. While observing the techniques, it seems that the bullish trend is part of a corrective structure. If the technical information is correct, it is possible for SHIB price to re-direct southwards towards the monthly lows of $0.00000978. If this level fails to hold as support, a retest of the June $0.00000800 low is likely.
SHIB price is currently trading at $0.00001211. Meanwhile, the Relative Strength Index provides subtle clues that confuse a possible bearish trend scenario. The 12-hour chart shows a bearish cross between June 26 and July 10 high and the latest breach of $0.00001200. This is the only clue as a possible reason for a future sale of 20-30%.
Traders are likely to anticipate more liquidity hunts disguised as a bullish trend in price action as high as $0.00001300. The invalidation of the bear trend is a breach of the May 13 high of $0.00001437. A breach of this barrier means a true bullish trend targeting $0.00002492. This results in a 112% increase from the current SHIB price.
Will Ethereum Merge hopium continue? Or is it a bull trap?
Ethereum is outperforming the broader cryptocurrency market as the much-anticipated Merge approaches. But the big picture is still largely bearish. Ethereum has gained a massive 48% over the past seven days. It outperformed its older brother Bitcoin, which only managed to reach 19% in the same period. It was also up 66% from the market cycle low of $918 on June 19. With this performance, it reached its current price of $ 1,549.
However, the current Ethereum rally is likely to be a bull trap as the macroeconomic clouds turn dark. A bull trap is a signal of a bearish reversal in a crypto asset. It’s actually a sign that it’s going up when it’s going down. The main driver of the recent momentum for the asset is in the announcements regarding the Proof-of-Stake (PoS) transition scheduled for September 19.
cryptocoin.comAs you follow, Merge will reduce the energy consumption of the network by more than 99%. However, scaling will happen via sharing, which is expected next year. So it doesn’t need to significantly reduce transaction fees. On July 19, a Coinbase report on Merge revealed that the next big step and the final dress rehearsal is the Goerli testnet Merge, scheduled for August 11. Goerli has the most user activity and the most realistic simulation. The most tested Ethereum environment in the war.
The big upgrade is the key driver of the current Ethereum market sentiment. However, the asset is still trading down 68% from ATH in November 2021. There are also concerns that a significant amount of ETH may flood the market after Merge and its smart contracts are released. But that’s unlikely to happen, says Eliézer Ndinga, 21Shares’ director of research:
Ether’s withdrawal won’t happen until 6-12 months after Merge after the Shanghai upgrade. Withdrawals will be limited to six validators at each stage or ~6 minutes to avoid bank operations and keep the network secure.
What do Finder’s Ethereum estimates show?
Meanwhile, in a recent survey by Finder before the latest rally, there are still a lot of negative views on short-term Ethereum prices. The panel of 54 industry experts surveyed predicts that ETH will be worth $1,711 by the end of 2022. They also predict it will grow to $5,739 in 2025 and reach $14,412 by 2030. However, they also note that it will drop to $675 before the end of the year.
Finder says there are several macroeconomic factors that could cause this pullback. Markets expect the Fed to increase by 75 basis points at its meeting on July 26-27. This usually means a bearish trend for crypto markets. If Bitcoin takes a dive, Ethereum is sure to follow.
Additionally, the US Bureau of Economic Analysis (BEA) will release its preliminary forecast for second-quarter GDP growth on July 28. Another expected negative quarter will mean the country is in a technical recession. This will badly affect risky assets like Ethereum.
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