Ethereum is facing a critical support test as it trades around $4,185, marking a decline of more than 5% in recent sessions. The cryptocurrency has broken down from a symmetrical triangle pattern that had been forming for several weeks, disappointing many traders who expected a surge in volatility. This bearish breakout has confirmed resistance at $4,600, indicating an increase in selling pressure.
The outlook for Ethereum is complicated by mixed signals from its moving averages. Recently, ETH penetrated the 50-day moving average and is now relying on the 100-day average, located at $3,880, to provide support. A failure to hold this level could lead to a further decline toward the 200-day average at $3,378, which would erase much of the gains seen over the summer. Volume spikes during recent downward movements suggest that sellers currently have the upper hand.
The Relative Strength Index (RSI) has fallen below 40, indicating that ETH may be overshooting its downward potential. However, this could also set up a scenario for a short-term relief bounce. A significant psychological and technical threshold lies at the $4,000 mark; breaching this could lead to a test of the support at $3,800. Conversely, if Ethereum can regain the $4,400 level, it may help in restoring some market confidence, though current momentum appears to be directed southward.
Meanwhile, Shiba Inu is trading near $0.0000122 after a brief dip below its own symmetrical triangle. Notably, there has not been a significant increase in selling pressure, with on-chain data indicating that holders are not rushing to sell their assets. This relative calm allows SHIB the opportunity to stabilize. The daily chart shows that SHIB is consolidating between major moving averages, with the 200-day exponential moving average (EMA) around $0.0000100 acting as broad support. Recent volume declines have not spiked dramatically, suggesting that market capitulation has not yet occurred. The RSI is sitting at 41, indicating a somewhat oversold market, which could fuel a recovery rally.
Should Shiba Inu manage to regain the range of $0.0000130-$0.0000135, bullish momentum may return. Although the target of $0.000020 appears distant, it remains viable if market conditions improve in the fourth quarter. Historically, SHIB has demonstrated the capacity to make significant moves when demand rises.
In contrast, Dogecoin is trading around $0.23 after testing resistance levels near $0.30. Despite recent declines, DOGE has found support at the 50-day exponential moving average, which has historically acted as a launching pad for price recoveries. The broader bullish structure remains intact as long as this level holds. Volume trends indicate that selling pressure has not been particularly severe, and the formation of higher lows indicates that the market is defending key price zones, preserving much of the gains achieved over the summer. The RSI, at 45, is approaching neutral territory, suggesting reduced risk for an overheated market.
If Dogecoin can reclaim the $0.25 level soon, it may pave the way for a rapid ascent toward the $0.28-$0.30 resistance zone. A breakout from this point could eventually target $0.32. Dogecoin’s resilience compared to other cryptocurrencies is noteworthy, particularly its ability to stay above long-term averages like the 200 EMA despite ongoing volatility, suggesting that an underlying value base remains.
Each of these cryptocurrencies is grappling with distinct technical challenges; however, the absence of panic selling across all three suggests that the markets are in a consolidation phase rather than facing a collapse. The next few sessions will be crucial in determining whether these support levels can hold or if further downside pressure will emerge.
