Crypto Rebound Faces Critical Test at Key Resistance Levels

The crypto market is showing mixed signals this week, with Bitcoin struggling to maintain upward momentum. BTC has encountered substantial profit-taking pressure around the 116,000 mark and retreated before establishing a decisive break above this barrier. Despite the pullback, the underlying technical structure remains intact, keeping the door open for further gains. The immediate focus centers on whether selling interest will emerge again in the zone above 116,000, though the broader bias should favor higher prices moving forward.

Ethereum Outpaces Bitcoin’s Hesitation

Ethereum is demonstrating considerably stronger relative performance compared to Bitcoin. The technical setup for ETH appears more favorable, with limited downside risks materializing. In the near term, 3,800 represents a potential test level to watch for support confirmation. However, traders should remain cautious about overly aggressive rallies, as rapid price appreciation could trigger bearish divergence signals on momentum indicators. The 4,000 zone continues to serve as the critical resistance that would validate a sustained uptrend continuation.

Staking Tokens Rally on Regulatory Tailwinds

A pivotal catalyst emerged when the SEC provided encouraging signals regarding Ethereum staking mechanisms. This positive development sparked a notable rally across the staking ecosystem, particularly benefiting tokens that represent staking protocols and arbitrage opportunities. The market has shown growing acceptance of alternative staking participation models, including those offered by specialized platforms. This regulatory encouragement is expected to sustain near-term tailwinds for staking-related assets, with LDO, ETHFI, and JTO positioned as potential beneficiaries of this renewed interest in yield-generating opportunities within the Ethereum network.

Current Price Snapshot:

• BTC: $87.48K (-0.75% in 24h)
• ETH: $2.93K (-1.06% in 24h)