Cautious Rebound in Bitcoin Faced with Selling Walls; Ethereum Shows Resilience as Staking Catalyst Emerges

Bitcoin’s recovery attempt yesterday ran into headwinds, failing to maintain momentum above the 116000 level before retreating. The technical structure remains intact for now, but the critical question persists: can the market overcome the concentrated selling resistance that has built up above 116000? Despite the pullback, the broader trajectory should continue pointing north, though buyers will need to demonstrate renewed conviction.

Ethereum tells a different story. The altcoin is displaying noticeably stronger relative performance compared to its larger peer, with limited downside room in the current cycle. A retest of the 3800 support zone is still on the table in the near term—a crucial level to watch for stabilization signals. However, traders should remain vigilant: if the rally accelerates too quickly, technical divergence becomes a real risk, potentially trapping late buyers. The 4000 resistance zone will serve as a true test of breakout credibility.

The Staking Narrative Fuels Shanzhai Outperformance

Yesterday’s SEC endorsement of Ethereum staking mechanisms triggered a meaningful shift in market sentiment. The green light for institutional participation in staking arbitrage has reignited interest in yield-generating protocols and tokens. The shanzhai market capitalized on this momentum, with staking-related tokens rallying sharply.

Tokens positioned at the intersection of staking infrastructure and DeFi participation—particularly LDO, ETHFI, and JTO—are drawing fresh capital flows. This temporary demand surge is reshaping the risk-reward profile for shanzhai players, as the market signals renewed appetite for yield strategies in a rising rate environment.

Current Market Snapshot:

• BTC: $87.53K (-0.48% 24h)
• ETH: $2.93K (-0.64% 24h)

The convergence of technical recovery attempts and fundamental tailwinds from regulatory clarity suggests selective opportunities remain—but discipline in position sizing and level management remains paramount.