The crypto market has returned to life this week, with Bitcoin and Ethereum showing renewed momentum after weeks of choppy action. BTC is now hovering near $87,000, gaining over 4% on the week, while Ethereum has climbed more than 7%, reclaiming $2,000 amid growing anticipation around its upcoming upgrade.
A Bullish Breakout, but Resistance Looms
Bitcoin recently broke out of a falling wedge pattern—a structure often associated with bullish reversals. With a strong weekly close above its 21- and 200-day EMAs, the technical outlook appears favorable. Key resistance sits around $88,000, and a clean breakout above this level could pave the way for BTC to test the psychological $90K barrier.
Yet, not everything points straight up. High timeframe indicators are flashing some caution, and bearish divergences suggest the market may be heating up too quickly. Support remains firm near $82K, and that range may hold the key to where BTC moves next.
Ethereum Finds Strength in the Pectra Narrative
Ethereum’s rebound has been led by growing optimism surrounding the Pectra upgrade, which promises to improve network efficiency and scalability. ETH has managed to halt a three-week losing streak and now trades between $1,900 and $2,200. Despite positive sentiment, the 200-day moving average is still trending downward—a sign that bulls aren’t completely out of the woods yet.
The upgrade narrative could provide further fuel, but sustained momentum may require a clear break above the $2,300 level. Until then, ETH remains in a consolidation phase, albeit with a bullish tilt.
Tariffs, Fed Policy, and Macro Shadows
Zooming out, traders should remain cautious. April 2 looms large as markets brace for the potential shock of new U.S. tariffs. Ripple effects could range from inflation to supply chain snarls and further strain on global trade. Meanwhile, the Federal Reserve’s firm stance on interest rates, coupled with sticky inflation, adds another layer of uncertainty.
On the flip side, crypto-friendly policy signals—particularly from Trump’s camp and a softening SEC approach—are injecting some optimism into the space. These shifts could encourage longer-term adoption and reduce legal headwinds.
Should You Buy or Sell?
Bitcoin and Ethereum are showing signs of strength, but the broader environment still demands a cautious approach. The $88K and $2,300 resistance levels are critical—if breached, they could signal the start of a larger rally. If they fail, we may be looking at more range-bound chop or even a deeper correction.
📌 This article is not financial advice. Always do your own research before making investment decisions.
