Bulls have been waiting for Ethereum to deliver a bullish technical signal for a long time. ETH has successfully broken out of a declining trendline that had capped every attempt at recovery since May after spending weeks stuck beneath short-term resistance. The move is one of the most significant technical advancements Ethereum has seen in recent months, even though it is not yet sufficient to signal the beginning of a full-scale bull market.
In the vicinity of the $1,750–$1,800 range, Ethereum was able to break above the declining resistance line that connected a string of lower highs. This is noteworthy because, ever since the rejection from the $2,400 area earlier in the year, the pattern has been strengthening bearish momentum. Ethereum is currently holding above its 50-day EMA at $1,740, and price action is stabilizing around $1,790.
Additionally, the 100-day EMA at $1,755 has been reclaimed, forming a supportive cluster below current price levels. The market structure observed throughout June, when ETH remained in the downtrend, is noticeably different from this. The improving outlook is reinforced by momentum indicators.
The RSI has risen above 53, indicating increasing buying pressure and firmly entering bullish territory. In contrast to earlier attempts at a rebound, the current move has not caused the RSI to enter an overbought state, allowing for further upside if buyers continue to be active. The next challenge is just around the corner.
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The psychologically significant $1,800-$1,850 range, which has frequently served as resistance over the past few months, is drawing closer to Ethereum. The bullish case would be strengthened by a clear move above that area, which might also lead to an advance toward the 200-day EMA at $2,220. It is still important to keep an eye on volume.
Although the breakout is technically sound, increased trading activity would provide more evidence that larger market players and institutions, as opposed to just short-term traders, are backing the move.
There has been no complete reversal of the general trend. Ethereum is still trading beneath the long-term resistance structure set earlier this year and remains far below its 200-day moving average. However, the short-term picture is significantly altered by the successful trendline breakout.
Confidence in XRP
XRP’s wider recovery attempt might not be finished despite recent weakness and another rejection close to local resistance. Even though the asset is still stuck below important moving averages and is trading close to the $1.07 mark, there are a number of indicators suggesting that the market has not completely given up on the possibility of a bigger recovery. The chart doesn’t appear very confident at first glance.
At $1.11 for the 50-day EMA, $1.15 for the 100-day EMA, and $1.26 for the 200-day EMA, XRP is still below these benchmarks. Such a configuration usually indicates that sellers are still in control of the longer-term trend and reflects a bearish market structure. However, the moving averages alone don’t fully capture the complexity of the current situation.
The psychologically significant $1.00 area has been consistently defended by XRP since the sharp drop in June. Bears’ attempts to force a clear breakdown have all been thwarted by buying activity, resulting in a comparatively stable support zone. Despite weeks of pressure, XRP has avoided hitting new lows, which suggests that selling momentum is gradually waning.
A fascinating tale is also told by volume. Selling volume has been continuously dropping, but buying activity is still insufficient to cause a breakout. This frequently occurs during accumulation phases, when market participants are less inclined to sell at low prices. The RSI is currently in the neutral 40-45 range.
This indicates that XRP is far from overheated and has potential for a recovery move if overall market conditions improve, even though it does not indicate bullish momentum. Reclaiming the 50-day EMA remains the bulls’ primary goal. A successful move above $1.11 would probably draw in more momentum traders and open the door to the resistance zone between $1.15 and $1.20.
After that, the 200-day EMA at around $1.26 emerges as the primary technical obstacle. The current setup is notable because, despite trading below significant resistance levels, XRP is not accelerating downward. Rather, price action has begun a period of consolidation above support.
Bitcoin makes it back for now
BTC has risen back toward the $63,000-$64,000 range after rising from lows close to $58,000. This puts it directly below a significant resistance cluster that may dictate the market’s next big move. The 50-day exponential moving average, which is currently close to $64,600, is the most immediate challenge.
Over the past few weeks, Bitcoin has tested this level several times but has been unable to produce a clear breakout. Sellers have been drawn in at each rejection, highlighting the significance of this area. Nevertheless, there are a number of reasons why the likelihood of a resistance break is rising.
First, since the June bottom, Bitcoin has been able to set a string of higher lows. Instead of retreating to the $58,000 support area, buyers have continuously intervened at increasingly higher prices. This behavior frequently indicates growing confidence and accumulation beneath resistance.
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Second, momentum indicators are improving over time. The daily RSI is approaching the neutral 50 level after recovering from oversold territory. It shows that the bearish momentum that dominated June has significantly decreased, even though it is not yet a fully bullish signal.
The broader market structure also supports a breakout. Bitcoin spent a few weeks consolidating after the sharp drop from the $82,000 area. Before making another directional move, markets usually need to go through these stages of consolidation. The longer Bitcoin stays above important support levels without hitting new lows, the more pressure builds against surrounding resistance.
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Traders should not underestimate the challenges that lie ahead, however. Even if Bitcoin surpasses the 50-day EMA, there will be more resistance near the 100-day EMA, which is located at $68,600. Above that, the 200-day EMA at approximately $74,700 remains the final line separating the market from a complete trend reversal.
Volume continues to be an issue. In contrast to the significant selling volume observed during the June crash, recent recovery attempts have involved comparatively low trading activity. During any breakout attempt, bulls would prefer to see a discernible increase in participation.
For the time being, Bitcoin does not appear to be actively rejected by resistance; instead, it seems to be coiling beneath it. A close above the $64,500–$65,000 range would greatly boost sentiment and might lead to a move toward $68,000. The technical setup indicates that Bitcoin’s chances of breaking resistance are improving every day, even though confirmation is still required.
