What's going on? Is This Bitcoin (BTC) Resistance Unbreakable? Ethereum (ETH) Nearing Fundamental Crisis? Posted by U.Today
U.Today – The price has moved very little or not at all in the last few weeks and continues to be stuck in a deadlock. SHIB has made several attempts to break out of its current trading range but has been unable to build momentum which has left investors and traders uneasy.
By examining the available market and on-chain data it can be seen that SHIB is currently stuck in a narrow trading range with its price hovering around $0.0000134. The 200-day and 100-day exponential moving averages (EMA) are in line with resistance levels at $0.00001813 and $0.00001597 respectively which are important to watch.
A strong uptrend may follow if SHIB manages to break these levels which may signal the end of this long standing period. Support at $0.00001200 is still important on the downside. SHIB may enter a deep correction if a decline occurs below this level which may lead to further declines.
This could extend the current volatility further which would be of great concern to those looking for a bullish reversal. On-chain indicators point to a lack of significant buying interest in line with the mixed market sentiment surrounding SHIB. Because traders are cautious and wait for a clear move before committing to new positions the trading volume is always very low.
it cannot break through
The 50-day moving average on the chart at $61,000 represents an important resistance level that Bitcoin recently encountered. Four times in a row Bitcoin has failed to break through this barrier despite multiple attempts indicating that this resistance may be stronger than first thought. For traders and investors who fail to break above $61,000 it is worrying because it can indicate a period of inactivity in the price of Bitcoin.
A common technical indicator is the 50 EMA which can indicate weak bullish momentum when the price finds it difficult to break above it. This puts Bitcoin in a situation where it could be stuck in a narrow trading range and unable to get the momentum it needs to move higher. The broader market environment is making matters worse as there are indications of growing difficulty and unpredictability.
Lack of strong buying interest and reduced trading volume are two possible reasons for not being able to break through this level of resistance in the market.
can be used properly
Ethereum transaction fees have fallen to their lowest point in five years suggesting a possible fundamental problem. Broader market forces and the network's economic model may have a significant impact on these fee declines.
According to the charts provided the supply of ETH has increased by 58,292 ETH in the last 30 days for a yearly release rate of 939,000 ETH. The critical burn rate for limiting supply and maintaining scarcity has dropped to 229,000 ETH annually. With a net increase in the annual supply of 0.59% of the Ethereums value proposition that is mainly focused on lowering since the transition to Ethereum 2 may be reduced.
Short-term user benefits from lower transaction costs may be offset by reduced incentives for verifiers and a decrease in overall network security and stability. The reward structure of the verifiers becomes unattractive if payments are made slowly which may result in a decrease in network participation. In a proof-of-stake system where authentication compensations are essential to maintain network security this situation is of particular concern.
Key aspects of Ethereum's value such as network security and liquidity could be at risk if this trend continues, which could lead to a long period of stagnation or even a decline. A key issue that must be resolved in order to stop Ethereum's market dominance from further eroding is the continued decline in cost and burn rate.
This article was originally published on U.Today
