Bitcoin and Ethereum Test Resistance as Traders Eye Breakout or Pullback

Altcoin AnalysisBitcoin Analysis

Bitcoin (BTC) and Ethereum (ETH) are both testing critical price zones after recent recoveries, leaving traders debating whether the rally has enough fuel to continue or if another pullback is imminent.

Over the past week, Bitcoin rebounded from support near $111,673 and briefly touched $117,000, while Ethereum surged past $4,000 before cooling to around $3,963 at press time. Despite these gains, analysts remain cautious, pointing to seasonal market weakness and a lack of major macroeconomic catalysts.

Bitcoin – Consolidation or Breakout Ahead？

BTCs recovery has been supported by a bounce in momentum indicators, but price action remains capped below heavy resistance. If bulls manage to push the price decisively above $117,500, the next upside target could be $120,000–$122,000.

However, failure to break higher may result in a drop back toward the $112,000–$110,000 zone, especially if macro sentiment sours.

Ethereum – Pullback or Push Beyond $4K？

ETH has been showing strong short-term momentum, with the RSI holding near 59 and MACD still in positive territory. Earlier today, it reclaimed $4,000 for the first time in weeks before facing selling pressure.

On the bullish side, a sustained move above $4,050 could open the door to $4,200 and potentially $4,350 if buying volume accelerates. Conversely, a dip below $3,900 might signal a return to the $3,750–$3,700 support range.

Market Factors to Watch

Analysts from 10X Research note that while on-chain activity for Ethereum has improved, much of the recent price action is sentiment-driven rather than based on fundamentals.

For Bitcoin, potential policy moves—such as U.S. President Donald Trumps efforts to expand crypto investment options in retirement accounts—could provide a medium-term catalyst, though market reaction has so far been muted.

With both BTC and ETH sitting at critical inflection points, traders should expect heightened volatility in the coming sessions. A decisive breakout or breakdown from current ranges will likely set the tone for the rest of August.

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.