• Crypto market resumes bearish trend
• Ethereum Falls Below $3,000, Bitcoin Below $40,000
• Shiba Inu reverses at the 100 daily SMA

Cryptocurrencies have been considered a great investment, since they have been making enormous gains, particularly in recent years. 2021 was by far the best year for cryptocurrencies, although some of last year’s bullish momentum was attributed to the enormous amounts of funds spent by central banks and governments to combat the economic meltdown due to the coronavirus.

Now that central banks are turning hawkish, cryptocurrencies are retreating. We saw a decent attempt to resume the larger bullish trend earlier this year, with Bitcoin (BTC) increasing to $46,000, while Ethereum rose to $3,300. Shiba Inu coin also surged around 100% higher,  but failed to push above the last moving averages on the daily chart, which turned into resistance, and now they have resumed the decline.

Ethereum Daily Chart Analysis – ETH Reverses at the 50 SMA

Ethereum falls below $3,000 again

Ethereum has been displaying weakness during the last few months. It reversed below $5,000, after failing to break that major level, and the decline picked up pace until the middle of January, as shown by the 20 SMA (gray), which was providing resistance during that time. We saw a pullback in previous weeks, but the 50 SMA (yellow) turned into resistance, rejecting the price twice, and now ETH/USD has fallen below $3,000 again.

Ethereum’s competitors continue to pop up, and many analysts expect them to take away some of the market share from Ethereum, as the Ethereum blockchain continues to suffer, due to high fees and congestion. But Vitalik Buterin has announced that Ethereum will be adding a blob-carrying transaction feature, which is expected to increase the scalability. But, that has failed to generate much interest in the crypto industry, and Ethereum continues to slip lower.

Shiba Inu Daily Chart Analysis – The 100 SMA Sends SHIB Down

Can the 50 SMA hold as support for Shiba?

Shiba Inu made a strong rally during October last year, surging around $15 times from the bottom of the previous range at $0.0000060, to the all-time high at $0.000088. Although since then the trend has been bearish and the decline has been steep, with Shiba losing around 80% of its value, as it slipped below the two support levels in January.

In the first week of this month, we saw a decent surge for several days, which pushed the price to $0.000035, as a large whale was spotted buying SHIB coins. Ther is positive news of Shiba launching Shibarium on a Layer 2 network, which is supposed to be faster than the existing Layer 1, which has been plagued by congestion problems. This should help with adoption, as Shiba enters the GameFi scene.

But, SHIB/USD has returned lower, and despite the burning of SHIB coins by Steven Cooperas, the sentiment in the crypto market has turned bearish. But, the coin has been trading at the 50 SMA (yellow) in the last two days, so let’s see if that moving average turns resistance into support. If it does, then this might be a good place to buy Shiba coins.

Shiba Inu Coin SHIB Live Chart