Cryptocurrency Market Divergence: Ethereum Faces Resistance, Shiba Inu Continues Under Pressure, Zero-Knowledge Proof Technology Gains Attention

The current cryptocurrency market shows a clear differentiation trend. Among various digital assets, Ethereum(ETH) is testing key price levels, while Shiba Inu(SHIB) faces ongoing downward pressure. Meanwhile, privacy technologies such as zero-knowledge proofs(ZKP) are beginning to attract market attention. These changes reflect a deep adjustment happening across the industry.

Ethereum Price Trends: Technical Test at the $3.11 Level

Ethereum is currently trading at $3.11K, with a 24-hour decline of 3.52%. From a technical perspective, ETH is operating within a critical consolidation zone. On-chain data shows that long-term holders remain active, providing a certain support base for the price.

Analysts point out that Ethereum faces dual constraints between the support level at $2,920 and resistance at $4,000. Although chart patterns suggest a possible breakout opportunity, there is a lack of strong volume support. Renowned analysts like Tom Lee remain optimistic about Ethereum’s long-term prospects, but are more cautious regarding short-term movements.

Currently, Ethereum is more likely to continue trading within the consolidation range rather than breaking out immediately. If resistance cannot be effectively broken, further sideways movement or even a dip to support levels are possible scenarios.

Shiba Inu Buying Pressure Increases: Signal of Meme Coin Popularity Decline

Shiba Inu’s outlook is more pessimistic. This Meme coin has lost nearly 70% of its value during recent declines. Investors looking to buy Shiba Inu are facing serious fundamental challenges.

The total market cap of Meme coins has fallen from over $10 billion at its peak to around $3.9 billion. In comparison, Bitcoin and Ethereum have shown stronger resilience. Shiba Inu’s poor performance is due not only to declining sector popularity but also to its own factors.

First, trading activity has shrunk. SHIB’s futures trading volume is relatively low, indicating limited short-term capital interest. Second, ecosystem development faces bottlenecks. Shibarium, as a key narrative for the project, has failed to attract enough developers, with only 18 active developers currently. The total value locked (TVL) in its ecosystem has fallen to around $1.45 million. Lastly, security incidents have further shaken market confidence. These factors combined make a short-term rebound for Shiba Inu unlikely.

Zero-Knowledge Proof Technology: A New Direction for Industry Exploration

Contrasting with the sluggish performance of mainstream coins, privacy and verification technologies like zero-knowledge proofs(ZKP) are gaining more attention. This reflects ongoing market interest in technological innovation.

The core value of zero-knowledge proof technology lies in its potential for AI applications. As AI is widely deployed across industries, data privacy and security verification become urgent needs. Zero-knowledge proofs can enable data validation and information sharing without revealing the original data. This capability is crucial for AI applications that require user privacy protection.

Some projects are attempting to establish relatively fair participation mechanisms. For example, implementing limits on single transaction sizes(such as a $50,000 cap) aims to prevent large holders from controlling liquidity too early. By using transparent mathematical models to determine price discovery rather than human pricing, such mechanisms seek to reduce market manipulation risks. This design approach has attracted investors seeking fairness and transparency.

Market Insights: Diversification and Risk Prevention

The current market landscape shows that investor focus is becoming more dispersed. Mainstream assets like Ethereum and Bitcoin continue to serve as market cornerstones, but their growth momentum has slowed. The ongoing decline in Meme coins indicates that high-risk assets are the first to suffer during market corrections. Meanwhile, technological innovation directions(such as privacy computing and zero-knowledge proofs) are gaining attention from academia and industry.

This differentiation reminds investors of the importance of adopting diversified strategies in the crypto market. It’s essential to monitor the technical developments of mainstream assets while being cautious of concentration risks in high-risk assets. For emerging technology sectors, a thorough understanding of their application scenarios and market positioning is necessary to carefully evaluate their long-term value. The market’s uncertainty requires investors to maintain continuous learning and rational judgment.