• Ethereum ($4,129.27) and Shiba Inu ($0.00001037) are now trading with close correlation, signalling market optimism.
• Recent charts confirm analysts’ observations about the coins, as ETH and SHIB move together.
• Increasing whale activities and active addresses suggest a growing network strength and shared bullish scenario.

The digital market has now turned bullish this week, with new momentum across main altcoins and meme coins. Analysing the biggest players, ETH and SHIB are the leaders. While the market sentiment improves, analysts now observe a close relation between these coins. In this article, we are going to analyse the five main factors that led to Ethereum’s rally, which drives Shiba Inu’s price momentum. Both Ethereum ($4,129.27) and Shiba Inu ($0.00001037) are now trading with a close relation mirroring the market optimism.

Analysts Observe A Close Correlation

According to the recent update on X by the $SHIB KNIGHT from the SHIB community, just captured this market mood. “$SHIB & #Ethereum are pumping together — thesis is simple: SHIB rides the ETH wave.”

This tweet quickly gained traction among the investors and traders. According to analysts, this isn’t a coincidence. The on-chain data, trading charts, and social metrics everything point to their relation, that is, SHIB’s latest surge is being powered by Ethereum’s strength.

The 5 Key Reasons Behind ETH and SHIB Correlated Rally

• ETH’s bullish breakout leads SHIB’s price surge is evident in the chart as represented by the TradingView chart.
• Santiment on-chain data shows higher active addresses for two of them, signalling the rising participation of users.
• The surge in Whale transactions highlights the big wallet movements, which prove liquidity rotation.
• The CoinMarketCap data ensures both ETH and SHIB market caps grow in sync, showing equal investor confidence.
• Social sentiments also reflect the strong community buzz as ETH powers up the SHIB rally.

ETH Rally Drives SHIB Momentum

According to the data curated from TradingView, ETH’s recent breakout from the stage of consolidation to $4100 points to the bullish momentum. The chart shows both ETH(candles) and SHIB(blue line) with renewed strength and volume upward.

It is clearly visible in the price movement that SHIB always tends to follow the ETH breakout pattern because of the liquidity shifts. When ETH takes a break after a surge, SHIB just reacted after 12 hours, showing their correlation.

Also Read: Ethereum (ETH) Price Targets $4850 as Institutions Accumulate $23.5 Billion

Whale Transactions Ties With ETH and SHIB

According to the data curated from Santiment, this on-chain data proves that the networks of both coins are moving together. The sentiment data shows a parallel increase in active addresses and in the whale transaction for both coins. The pattern points to the accumulation and rising network usage by the communities. The large whale transaction paved the way for short-term rallies across the linked coins in the blockchain.

The chart below shows the active addresses and whale transactions of Ethereum.

The chart below shows the active addresses and whale transactions of SHIB. Both charts give signals that the coins are moving in tandem. They are driven by active user engagement as well as capital inflows.

Marketcap Climbs Together For Ethereum and SHIB

The chart from CoinMarketCap shows a simultaneous increase in the price and market capitalization of both assets. Ethereum’s rally to just above $4,100 strengthened the investors’ confidence. This growth just spilled into Shiba Inu, pushing the market cap to $6.3 billion. This pattern highlights how the network helps the coins inside it to echo or mirror the movements.

Social Buzz Igniting The Ride

According to CoinMarketCap data, the community sentiment is also bullish for both coins. ETH holds 82% bullish sentiment, while Shiba Inu leads with 87%. Their correlation is even evident in this voting. The traders and investors ensure the idea that the coins are both moving in positive sentiment cycles with shared market confidence.

Ethereum’s powerful comeback laid a foundation for its network’s growth. It has strengthened the ecosystem-wide momentum, and SHIB ‘s surge is a mirroring of that. The analyst’s observations are supported by the charts and on-chain data, and sentiments.

Also Read: Ethereum Poised for $8,000 Surge Following Strong Market Recovery