Hyperliquid plunges below $40: Ethereum and SHIB face pressure

HYPE loses its key support: What is happening?

The native token of Hyperliquid has just suffered a brutal retracement. After hovering near its recent highs, HYPE has broken below its critical support to trade around $38.90, slipping under the psychological $40 mark. This breakdown comes amid a sudden contraction in volume, as traders massively reduced their exposure to this Layer 1 blockchain specialized in decentralized trading. The move was amplified by a lack of immediate liquidity on the on chain order books.

This cascading sell off raises a legitimate question: is this a simple technical breather or the beginning of a deeper bearish trend? The technical analysis for HYPE points to an initial correction target at $35 if the selling pressure persists. The RSI has quickly exited its overbought territory, and the MACD shows a bearish crossover that reinforces the negative short term bias. Traders engaged in swing trading are watching these levels closely to identify a potential entry point.

However, the fundamentals of Hyperliquid remain solid. The protocol continues to process significant DEX volumes, and its leading position in the decentralized perpetual trading sector is not challenged by this correction. The crypto whales could take advantage of this dip to accumulate positions before the next bull run. For investors looking to buy crypto on this type of asset, patience remains the best strategy during an unconfirmed purge phase.

Is Ethereum preparing for a decisive breakout?

Unlike the pressure weighing on certain altcoins, Ethereum is showing remarkable resilience. ETH is trading around $2,260, supported by a discreet but steady accumulation visible on chain. The data reveals a compressing technical structure that often precedes a significant directional expansion. Network validators are posting record performances, reinforcing the confidence of institutional players in this network.

The key level to watch is at $2,400. Breaking through this resistance on a daily close, accompanied by a recovery in volume, would definitively validate the short term bullish scenario. The Bollinger Bands are tightening on ETH, a classic signal of an imminent volatility explosion. The open interest on Ethereum futures contracts is quietly increasing, indicating that fresh capital is entering the market without excessive euphoria.

The fundamental context reinforces this positive bias. The recent launch of the iShares Staked Ethereum Trust ETF (ETHB) by BlackRock and the filing of the JLTXX fund by JPMorgan on Ethereum are creating structural demand for the asset. For those looking to buy Ethereum or follow the Ethereum price predictions, this context of accelerated institutional adoption is the most important fundamental signal of the current cycle. Platforms like Binance and Coinbase offer the necessary liquidity to position oneself effectively.

Shiba Inu hits a wall: The rally falls short

Shiba Inu is going through a delicate phase that perfectly illustrates the limits of meme coins during a macro consolidation period. SHIB is trading around $0.0000062, unable to break through its key resistances despite the expectations of a portion of the community. Selling pressure remains heavy, and the canine token finds itself trapped in a horizontal channel without any catalyst capable of triggering a clear directional move.

Capital rotation largely explains this underperformance. Cautious investors prefer to secure their profits on the most volatile assets to reposition themselves on projects with real utility such as Ethereum, Solana or Chainlink. The fear and greed index sitting in the neutral zone does not favor the type of FOMO that usually propels meme coins toward exponential gains. Without this emotional fuel, SHIB lacks momentum.

The coming days will be decisive for the short term future of SHIB. If the current support and resistance level gives way, a further correction is likely. Conversely, an overall market recovery driven by Bitcoin could give speculative altcoins some breathing room. For traders practicing day trading on this type of asset, discipline regarding invalidation levels remains paramount to avoid a liquidation in the event of a sharp reversal.

Is this market purge an opportunity or a warning sign?

The simultaneous correction of several assets raises a structural question about the direction of the market. Bitcoin remains above $80,000, which preserves the macro bullish structure. But the weak volumes and the sell off on assets like HYPE serve as a reminder that volatility remains the fundamental rule of cryptocurrencies. Macro indicators, notably the copper to gold ratio and the flows into Bitcoin ETFs, remain favorable over the medium term.

For investors looking to invest in crypto with a cyclical logic, this purge phase is historically one of the best times to build positions. A fractional entry on the support zones identified by fundamental analysis and Fibonacci levels allows you to average your entry cost without trying to perfectly time the bottom. Securing your assets on a Ledger remains an elementary precaution, especially during periods of heightened volatility.

Our reading: the market is in a redistribution phase, not a capitulation. Hyperliquid is correcting after a significant rally, Ethereum is quietly accumulating, and Shiba Inu is suffering from a lack of catalysts. This configuration is classic in the middle of a cycle. The Bitcoin price predictions remain bullish on higher timeframes, and the overall crypto trend has not changed structurally. Platforms like OKX and Bybit allow you to position yourself on these assets with appropriate risk management tools.

Sources:

• MarzellCrypto on X
• Tradingview
• WHALES_CRYPTOt on X
• CryptoTony__ on X

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