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Ethereum, which has seen a strong uptick in the past day, made one of the biggest returns on the cryptocurrency market during Q4. Following weeks of sluggish recovery, Ethereum’s price has experienced a sharp increase, and it is currently exhibiting the strongest revival since the start of the quarter. After surpassing several significant resistance levels, ETH is currently trading at about $2,616.
This recent surge can be attributed in large part to the notable increase in open interest. An increase in open interest indicates that more investors and traders are joining the market, which frequently results in increased volatility and the possibility of additional price increases.
Since more long and short positions are being opened, an increase in open interest usually signifies growing market confidence. Technically speaking, Ethereum has cleared significant resistance lines that have held the asset down for months and recovered from its most recent support levels around $2,400. The price performance has also moved in the direction of an upward trend.
The break of the 50-day moving average, which frequently marks the start of a more robust bullish trend, has occurred. There is still more resistance for Ethereum to overcome, though, especially in the $2,800 price range, which might be difficult to do without enough buying pressure.
Whether Ethereum can maintain this momentum over the next few days is the question at hand. The recent spike in open interest may indicate that traders are gearing up for more significant market movements, but it remains to be seen if this will result in another significant push or if profit-taking will halt the rally.
Shiba Inu uptrend ahead?
Shiba Inu looks to be about to move into a new bullish phase based on recent price activity that points to a possible upward trend. Combining a noteworthy increase in price with on-chain activity, SHIB may be a sign of improved market performance in the near future.
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A possible bullish reversal has begun, according to technical analysis, as SHIB has broken out of a significant resistance level at approximately $0.000018. A sustained hold above this level could indicate a new upward trend for the meme coin, so traders and investors should keep a close eye on it. Bullish investors may set their sights on $0.000020 as the next target if the price can maintain its hold above this crucial level.
A breakout above this level would indicate a more substantial reversal and might force SHIB to revisit higher resistance levels from earlier in the year.
It is important to remember that there is still uncertainty on the cryptocurrency market as a whole, and SHIB will require steady buying pressure to maintain its upward momentum. Investors looking to confirm the beginning of a new bullish market phase should keep a close eye on both price action and on-chain signals.
Solana faces some risks
On its chart, Solana looks to be developing a possible double-top pattern, which could indicate trouble for the stock in the near future. In recent weeks, SOL’s price has been rising steadily, getting closer to the crucial $155 mark.
Because the asset has historically shown this price point to be a strong resistance level, there is rising concern that the market might not have enough momentum to overcome it. Generally regarded as a bearish formation, the double-top pattern happens when the price tests a resistance level twice and fails to break above it, leading to a decline.
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In Solana’s case, the chart indicates that the asset had previously hit this $155 mark and had experienced a large pullback due to its inability to maintain any further gains. Traders and investors are now wary of the prospects of another reversal, as SOL is getting closer to this level once more.
Therefore, Solana is not benefiting from the current state of the market. This kind of increase in trading volume that would normally accompany a strong breakout has not occurred, despite the price movement upward.
With immediate support levels at $140 and $135, Solana may experience a large decline if it is unable to breach the $155 resistance once more. Traders should closely monitor the $155 threshold for the time being. A bearish phase for Solana could soon begin if the asset is unable to break out and confirms the double-top pattern.