Bitcoin, Ethereum on Verge of Breakout or Rejection

Bitcoin and Ethereum are approaching critical technical levels that could determine whether their recent consolidation develops into a broader recovery.

Prominent pseudonymous technical analyst Nik noted in a report that Bitcoin remains tightly range-bound between its 200-week moving average near $62,500 and resistance around $65,800. While the weekly structure is still bearish, momentum is improving after a bullish divergence at the June low.

Bitcoin has held above its February low near $60,000 for more than six months, suggesting that bearish momentum may be weakening. However, the immediate downside level to watch is $62,500, and if Bitcoin falls below this level, $60,000 could come back into focus.

Ethereum, on the other hand, has shown a similar constructive technical setup after breaking above its long-term descending trendline from its all-time highs. ETH is now consolidating beneath anchored VWAP resistance around $1,973, and if it closes above this level followed by acceptance above $2,000, it could indicate that Ethereum's capitulation phase is over.

In fact, the daily structure and momentum of both Bitcoin and Ethereum have turned bullish, with several VWAP measures providing support. The improving price structure of Ethereum is being accompanied by a notable jump in blockchain activity, which could benefit from growing spot ETF demand, expanding Layer-2 capacity, and increasing institutional interest.