Ethereum faced a notable increase in buying pressure, leading to a bullish rebound at the crucial $1.5K support. The price faces a decisive resistance range at $1.8K, expected to enter a short-term consolidation before breaking above it.

Technical Analysis

By Shayan

The Daily Chart

After a period of muted price action and market inactivity around the decisive $1.5K long-term support region, Ethereum eventually experienced a surge in buying pressure, triggering a bullish rebound. This wave of demand has pushed the price toward the significant $1.8K resistance zone. This area coincides with an important order block, where smart money typically places orders, reinforcing its significance.

The price action at this level is critical; a successful breakout above $1.8K would likely confirm a bullish reversal scenario, opening the path toward the $2.1K target. However, short-term consolidation around this resistance is probable before a decisive move unfolds.

The 4-Hour Chart

On the lower timeframe, ETH’s previous tight-range consolidation was broken by a notable influx of buyers, resulting in an impulsive breakout above the descending channel. This breakout was accompanied by strong bullish momentum, driving the price toward the key $1.8K resistance zone.

This region aligns with Ethereum’s prior swing lows, making it a robust supply area. As a result, short-term consolidation is expected at this level until demand or supply pressure determines the next move. A bullish breakout above $1.8K would set the $2.1K range as the next likely target for buyers.

Sentiment Analysis

By Shayan

The funding rates metric is a crucial indicator of sentiment in the futures markets. Analysing its recent behaviour provides important insights into Ethereum’s latest surge. Typically, healthy and sustainable bullish trends are accompanied by rising funding rates, signalling an influx of buyers in both the perpetual futures and spot markets.

Currently, however, funding rates are consolidating and showing no significant increase. This suggests that Ethereum’s recent price surge has primarily been driven by spot market buying rather than futures market speculation. For this bullish trend to be validated and gain persistence, the funding rates metric needs to start rising, reflecting growing confidence and aggressive buying in the futures market as well.

Bitcoin’s continuous rally that started earlier this week finally came to a halt at $96,000 as the asset failed to breach that level and has dropped by around two grand since then.

Many altcoins have produced even more painful declines over the past 24 hours, including SOL, DOGE, ADA, and SHIB.

BTC Rally Paused

It was a great week for the primary cryptocurrency. It began on Monday with a breakout from the short-term upper range boundary at $86,000 that sent BTC above $87,000. The asset continued its run on Tuesday and it finally jumped past $90,000 – for the first time since early March.

After a minor retracement, BTC kept climbing and tapped $92,000 on Wednesday. The culmination came on Friday when the bulls really stepped up on the gas pedal and sent the cryptocurrency flying to just shy of $96,000. This became its highest price in exactly two months.

The weekend has been a lot calmer, as bitcoin failed to overcome that resistance despite another attempt earlier on Sunday. As of now, though, BTC remains around two grand away from its local peak. Its market capitalization has slipped below $1.870 trillion on CG, while its dominance over the alts stands tall at 61.3%.

Alts Retrace

Most altcoins have dropped even more over the past day than BTC. In fact, only ETH and TRX are slightly in the green from the larger caps.

In contrast, some of yesterday’s top performers, such as PEPE and SHIB, have dropped by well over 5% each. ADA, SOL, DOGE, LINK, AVAX, and XRP are also in the red.

The cumulative market capitalization of all crypto assets has declined by around $40 billion since yesterday and roughly $70 billion since the Friday peak.

According to data from most exchanges, Bitcoin surged past $95,000 on Friday and early Sunday after a volatile ride in the past several weeks.

Up more than 11% over the last seven days and with a market cap hovering just under $1.88 trillion, BTC has social media ablaze with shouts of $100K+ price predictions, even as some seasoned voices warn retail traders to tread carefully.

$103K on the Cards

Analyst Titan of Crypto ignited the bullish case, claiming a “bull flag” breakout is underway, and predicting a short-term move to $103,000 in a post on X.

The asset’s recent price movement coincided with substantial accumulation by large investors. According to Santiment, wallets holding between 10 and 10,000 BTC have been aggressively adding to their positions, with Bitcoin advocate Kyle Chassé calling it “THE STRONGEST SIGNAL IN THE GAME!!!”

Santiment also revealed that market sentiment has reached its most greed-dominated level since November 2024, when the flagship cryptocurrency last peaked before correcting 13%.

The analytics platform suggested whales were ready to mop up any BTC offloaded by profit-seeking retail traders in this period, potentially giving the asset a leg up past $100,000:

“If they sell here because they think we are seeing a top, whales would likely scoop up those coins and potentially push Bitcoin above $100K in the next 1-2 weeks.”

Some prominent market watchers have also highlighted key technical developments, including Daan Crypto Trades, who observed Bitcoin’s resilience at key Fibonacci levels. “$BTC Strong bounce and continuation from the .382 Fibonacci Retracement level,” he stated, expressing his fondness for “higher timeframe trends.”

Bull Cycle Incoming?

Adding to the narrative, Michaël van de Poppe suggested the market might be entering a major bull cycle. He cited a chart by TechDev_52 showing that BTC has been in its longest bear run, lasting four years, and implied a reverse cycle was imminent. “We’re about to start the biggest bull cycle ever,” the crypto investor wrote.

However, the Santiment team offered a more cautious perspective, noting that excessive crowd greed might lead to a local top formation, while more measured behavior could allow BTC to maintain its divergence from traditional markets like the S&P 500.

With its dominance holding at 61.2% and institutional interest remaining strong, the cryptocurrency’s next move could set the tone for the rest of the digital asset market in the next week.