The market has reached a point at which essentially anything can happen: critical support levels are being tested and a breakdown might launch a massive downslide. Ethereum might lose $3,000, while Shiba Inu is close to becoming critical but is not yet there.
Ethereum’s questionable position
The notion that Ethereum is headed straight for $2,000 seems more and more exaggerated, even in light of the severe decline it has experienced in recent weeks. Yes, there is pressure on the market. Yes, important support levels for ETH have been lost. However, the current structure does not exhibit a collapse toward $2,000 in a straight line. The indicators actually point to more resilience than bears would like to acknowledge.
According to the chart, Ethereum has already declined from its local peak at about $4,800 to the low of $3,000, rejecting several resistances along the 50-day and 100-day moving averages. The way it is acting now that it is testing the 200-day moving average, however, is more important. This historically significant trend level is in close proximity to ETH, and it has not broken significantly below it.
The RSI is still close to 32, not quite oversold but very close to it. Throughout 2024 and 2025, ETH has either consolidated or bounced whenever it has reached comparable RSI readings in this range. Instead of a panic-driven meltdown, what we are currently witnessing is a pattern of fatigue. On the sell side, volume is also diminishing. Before a cascading crash, you do not usually see that.
Rather, if the overall market stabilizes, bulls will have an opportunity to reclaim control as sellers are fading out after heavy distribution earlier. A large amount of ETH is taken out of circulation due to continued high staking participation. In the absence of a total macro breakdown, this makes deep crashes more difficult to maintain.
In a liquidity sweep ETH might rise to $2,800 or even $2,600. However, a complete decline to $2,000 necessitates a much more drastic change in volume and sentiment than is currently the case.
Shiba Inu shows nothing new
Although some investors are freaking out, Shiba Inu is back in the $0.000008 range, and this level is far from disastrous. In actuality, SHIB has successfully traded in this region on numerous occasions. The current price is not a startling decline that deviates from past trends. It resembles a return to an area where the asset has demonstrated resilience, consolidation and recovery.
In retrospect, the chart shows that Shiba Inu spent a considerable portion of 2024 and the first part of 2025 below $0.000010 before attempting to rise. The project did not fail during these times, nor did they cause a large number of people to leave the SHIB ecosystem. The token merely went through its normal cycle of volatility.
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It is now repeating the same action. When taken consideration, even the recent decline below $0.000009 is not all that bad. SHIB has previously recovered from comparable zones, typically following an accumulation and low-volume trading phase. Declining volume, thinning volatility and no indications of forced capitulation are precisely what we are witnessing right now. Instead of collapsing, this is frequently a setup for stabilization.
The RSI is currently between 36 and 41, which is close to short-term oversold territory but not quite there. Once more, this is more consistent with a cooling phase rather than a sell-off caused by panic. Additionally, even though volume is lower than in earlier hype waves, SHIB is still trading with strong investor participation, in contrast to tokens that flash crash due to a lack of liquidity or abrupt rug pulls.
The fact that the 200-day moving average is still much higher than the current price merely indicates that we are in a corrective phase rather than a destructive one. Dog-themed meme coins like SHIB are in high demand both ways. Emotionally, the market may detest this level, but structurally, it is nothing new.
Where Bitcoin stops
Now that Bitcoin has broken well below the psychological $100,000 mark, it is rapidly entering one of the cycle’s steepest declines. There is a clear sense of panic sentiment being destroyed, and the liquidation volume might not be completed. Even though this appears brutal, there is a logical level where this crash is likely to find its floor, and it is not a mystery.
Around $84,273, the crucial local bottom formed earlier this year is the most practical landing zone. Before Bitcoin started to rise again, that level – which had been tested during a previous correction – was firmly maintained as a structural low. Put another way, it is evidence-based support. More significantly, it remains the strongest untested bid wall below the current price because it has not been affected by the recent crash.
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Bitcoin is currently trading close to $91,000, passing through several significant moving averages, such as the 50-day 100-day and 200-day. The RSI is currently close to 28, which historically corresponds to at least short-term local bottoms, indicating that it is already in deep oversold territory. The sell-off volume is increasing, but there is not yet a capitulation candle. The most technically sound reversal point is $84,273, and if one occurs, it most likely ends between $88,000 and $84,000.
This level is significant because it was the site of the final significant influx of spot buyers. It is not speculative froth but rather a zone that is structurally protected. Long-term owners made purchases there. They have a much higher chance of defending than folding if the price goes back to that level.
The market enters a completely new phase below $84,000, one in which Bitcoin may break the mid-cycle structure and move toward the 200-week SMA in the coming months. That is not yet the base case and is a much more pessimistic course.