Shiba Inu price has crawled back this month as demand from investors rose. It also rose as Ethereum price jumped from $1,300 in April to over $2,700 this week. As an ERC-20 coin, SHIB often does well when ETH is thriving. Therefore, this article explores the SHIB price target if Ethereum soars to a record high.
Will Ethereum jump to an all-time high?
Ethereum price jumped from a low of $1,390 in April to $2,745 on Wednesday. It needs to jump by about 92% from the current level to the all-time high of $4,900.
There are chances that the coin will bounce back in the coming months or years as demand for cryptocurrencies rises.
Ethereum still dominates key areas of the crypto market. For example, its decentralized finance (DeFi) total value locked (TVL) stands at $131 billion, higher than Solana’s $22 billion and BSC’s $8.6 billion. It has a 60% market dominance in the sector.
The same is true in the Non-Fungible Token (NFT) industry, where Ethereum handled over $48 million in transactions. Bitcoin, the second, processed nearly $20 million in transactions.
Technicals suggest that Ethereum price has a chance of soaring to a record high. The weekly chart shows it has moved above the 50-week Exponential Moving Average (EMA). It has also crossed the key resistance level at $2,500.
Ethereum’s path to it’s all-time high will be confirmed if it moves above the key resistance level at $4,052. Moving above that level will invalidate the double-top chart pattern and point to more gains, potentially to the record high of $4,935.
As shown below, the odds of Ethereum price jumping to a record high this year have risen to 26% on Polymarket. While still low, this figure is significantly higher than last month’s low of 11%.
Shiba Inu Price Prediction if ETH jumps to an all-time high
Shiba Inu and other Ethereum meme coins like Pepe and Dogelon Mars closely correlate with ETH. For example, most of them soared by double digits as Ether jumped from a low of $1,380 last month.
The weekly chart shows that the Shiba Inu price has formed an almost accurate harmonic pattern known as XABCD. This pattern comprises of four key phases: XA, AB, BC, and CD.
In Shiba Inu’s case, the XA phase started from March last year to August, while the AB happened through November. The BC phase happened through November.
SHIB price has started the final CD phase that will push it to at least last year’s high of $0.0000455. This price is about 195% above the current level. A drop below the AC section will invalidate the bullish outlook.
Other catalysts for the SHIB coin
The main reason why the Shiba Inu price may surge by 195% is the performance of Bitcoin and Ethereum.
SHIB has other catalysts that may push it higher over time. For example, there are signs that the Shibarium network is starting to grow as the total value locked (TVL) in the network jumped to almost $4 million.
Further, while no SHIB ETF has been applied yet, there are chances that it will, especially since SHIB is the second-biggest meme coin in the industry. It is also a viral coin that has over 1.5 million holders.
The other catalyst for Shiba Inu price is that its burn rate continues to grow this month. It has incinerated billions of tokens in the past few months, making it one of the most deflationary tokens in crypto.
Read more: Shiba Inu price prediction: mapping out potential SHIB scenarios
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