Bitcoin Leads Potential Crypto Rebound as Ethereum Tops $4,000 and Shiba Inu Recovers

• Ethereum’s rebound above $4,000 marks a critical retrace from recent lows, supported by the 200-day moving average.

• Bitcoin has regained control by breaking bearish liquidity, trading steadily above $110,000 with increased buying volume.

• Shiba Inu shows over 5% gains, eliminating a zero from its price and indicating potential for further altcoin recovery, per on-chain data from Glassnode.

Crypto market recovery gains steam in 2025 as Ethereum tops $4,000, Bitcoin surges past $110,000, and Shiba Inu rebounds. Discover key drivers and future outlook—stay ahead with expert insights today!

What is driving Ethereum’s price recovery above $4,000 in 2025?

Ethereum’s price recovery above $4,000 stems from a decisive rebound off the 200-day moving average, a vital long-term support indicator that has restored trader confidence following weeks of market turbulence. The second-largest cryptocurrency by market cap has climbed over 2% in the past 24 hours, reflecting broader risk appetite in the sector. This surge aligns with stabilizing Bitcoin prices, encouraging accumulation in Ethereum as on-chain metrics from sources like Dune Analytics show rising transaction volumes.

How has technical analysis confirmed Ethereum’s bullish reversal?

Ethereum’s technical setup underscores a potential shift from bearish to bullish trends, with the price reclaiming the 50-day exponential moving average (EMA) after dipping near $3,600. Volume indicators reveal heightened buying pressure through stronger green candles, while the Relative Strength Index (RSI) has climbed from oversold levels below 30, now hovering around 55, signaling neutral-to-bullish momentum. According to data from TradingView, this pattern mirrors historical recoveries where Ethereum tested higher EMAs before advancing 10-15% in subsequent weeks. Expert analyst Michaël van de Poppe notes, “The 200-day MA support at $3,900 is a game-changer; it often precedes multi-week uptrends in ETH when combined with rising volumes.” Resistance looms at $4,200-$4,300, but a breakout could target $4,500, provided support holds above $3,900. On-chain activity supports this, with Glassnode reporting a 12% increase in active addresses over the last seven days, indicating genuine demand rather than speculative noise. Short sentences highlight the setup: Buyers are dominant. Volume confirms accumulation. RSI avoids overbought risks. Overall, Ethereum’s resilience points to sustained gains if market sentiment remains positive.

ETH/USDT Chart by TradingView

Ethereum’s recovery reflects not just technical strength but also macroeconomic factors, such as renewed interest in layer-2 scaling solutions amid Ethereum’s ongoing upgrades. Institutional inflows, tracked by CoinShares, reached $250 million last week, bolstering the asset’s foundation. As Bitcoin stabilizes, Ethereum benefits from correlated flows, positioning it for potential leadership in the altcoin rally.

What factors are reducing Bitcoin’s volatility and boosting its price in 2025?

Bitcoin’s reduced volatility and price boost above $110,000 result from a swift recovery after heavy liquidations, where the asset found footing at the 200-day moving average near $106,000. This rebound has liquidated short positions, shifting liquidity to bullish zones and fostering a 3% daily gain. Drawing from Federal Reserve data on global liquidity, the cryptocurrency’s stabilization ties into easing monetary policies that enhance risk assets like BTC.

How is Bitcoin’s technical rebound influencing market-wide sentiment?

Bitcoin’s technical rebound is reshaping sentiment through clear signals of exhaustion in bearish pressure, with the RSI recovering from oversold territory to around 60, indicating building strength without immediate overextension. On-chain metrics from Chainalysis show a 15% spike in exchange outflows, suggesting long-term holding rather than selling. The price has consolidated just below $113,000-$114,000 resistance, where order book data reveals clustered stop-loss orders between $112,000 and $115,000. A breach here could trigger short-covering, propelling BTC toward $118,000-$120,000, as seen in past cycles analyzed by CryptoQuant. Analyst Willy Woo states, “Bitcoin’s bounce off the 200-day MA isn’t random—it’s a liquidity grab that often leads to 20%+ rallies when volumes align.” Trading volume has risen 8% in the last session, supporting a structural shift. Key levels include maintaining $108,000 support for upward continuation. Consolidation between $110,000 and $114,000 may follow, but a breakout could retest all-time highs. This momentum extends to altcoins, with Bitcoin dominance dipping 1.5% per TradingView metrics, allowing capital rotation into Ethereum and others.

BTC/USDT Chart by TradingView

Broader market dynamics, including regulatory clarity from SEC updates, contribute to Bitcoin’s steadiness. With total crypto market cap rebounding 4% to $3.2 trillion, per CoinMarketCap aggregates, Bitcoin’s role as a bellwether remains intact, driving optimism across the ecosystem.

How is Shiba Inu participating in the 2025 crypto recovery?

Shiba Inu’s participation in the 2025 crypto recovery involves a 5% rally that has pushed its price above $0.00001000, erasing a psychological zero and marking a shift from prolonged declines. This level, coinciding with historical demand zones, has drawn buyer interest, amplified by oversold RSI readings that prompted accumulation.

What technical and on-chain indicators support Shiba Inu’s momentum?

Shiba Inu’s momentum is backed by its close above the 20-day moving average, confirming a short-term reversal and setting sights on $0.00001120 resistance. On-chain data from Etherscan reveals a 10% uptick in holder counts, with whale wallets accumulating 2 trillion SHIB tokens in the past week. Volume has edged up 7%, per DexScreener, indicating renewed speculative interest tied to meme coin cycles. The next hurdles are $0.00001250, where past rallies stalled, but current patterns suggest potential for a 15% extension if Bitcoin’s stability persists. Analyst Pentoshi emphasizes, “SHIB’s zero removal is more than symbolic—it’s a demand signal in recovering markets, often leading to double-digit gains.” Short paragraphs aid readability: Support at $0.00000900 held firm. RSI now at 52, neutral bullish. Whales are buying dips. Overall, Shiba Inu’s tie to Ethereum’s ecosystem, via Shibarium layer-2, enhances its recovery prospects as transaction fees drop 20%, boosting utility.

The altcoin space, including Shiba Inu, benefits from Bitcoin and Ethereum’s leadership, with total altcoin market cap rising 6% amid capital inflows. Community-driven developments, like Shibarium’s 1 million daily transactions milestone reported by Shiba Inu team updates, add fundamental weight.

Frequently Asked Questions

What caused the recent crypto market dip before this 2025 recovery?

The recent crypto market dip was triggered by leveraged liquidations exceeding $500 million, per Coinglass data, amid macroeconomic concerns like interest rate hikes. Bitcoin fell below $106,000, pulling Ethereum and Shiba Inu down, but quick support at key moving averages halted the decline, paving the way for this rebound within 48 hours.

Will Ethereum maintain its position above $4,000 during voice search queries on crypto trends?

Ethereum is likely to hold above $4,000 if support at the 200-day moving average remains intact, as current technicals show steady volume and RSI stability. This level acts as a psychological floor, with historical data indicating 70% success in prior recoveries, making it a reliable base for ongoing bullish trends in the crypto space.

Key Takeaways

• Ethereum’s Recovery Strength: The rebound above $4,000, backed by EMA crossovers and rising volumes, signals long-term confidence and potential for $4,500 targets.
• Bitcoin’s Volatility Taming: Breaking $110,000 resistance reduces short-term risks, with on-chain outflows confirming institutional accumulation amid stable global liquidity.
• Shiba Inu’s Milestone: Crossing $0.00001000 offers a psychological boost, urging holders to monitor $0.00001250 for sustained altcoin rally participation.

Conclusion

In this evolving crypto market recovery, Ethereum’s surge above $4,000, Bitcoin’s volatility reduction above $110,000, and Shiba Inu’s price milestone highlight a sector-wide resurgence driven by technical supports and on-chain vitality. As 2025 progresses, maintaining key levels will be crucial for sustaining momentum, with experts forecasting heightened activity ahead—investors should watch for breakout confirmations to capitalize on emerging opportunities.

Published by COINOTAG on January 15, 2025. Last updated: January 15, 2025. All data sourced from public on-chain analytics and trading platforms for factual accuracy.