The cryptocurrency market is witnessing renewed optimism as Ethereum sets its sights on the $3,500 mark, a crucial bullish threshold. The recent momentum shift indicates a significant recovery from lows below $3,000, with ETH establishing a series of higher lows as buyers have stepped in decisively at key liquidity levels. Notably, trading volume has stabilized, signifying a transition from forced selling to more controlled accumulation.
In terms of technical analysis, the moving averages present a promising outlook. Ethereum has successfully reclaimed the 50-day exponential moving average (EMA) from its 20-day EMA. Historically, once ETH breaks above the 50-day EMA after a significant decline, it tends to continue its ascent toward the 200-day EMA, currently positioned between $3,450 and $3,550. This technical framework supports the expectation of a potential move toward $3,500.
Additionally, the relative strength index (RSI) has climbed out of oversold territory and is approaching neutral levels. This phase often marks a transition from a mere relief bounce to a more sustained trend, which Ethereum requires to break through higher resistance levels. However, caution is warranted as substantial resistance remains in the $3,400 to $3,600 range, where many buyers are still trapped. A surge toward $3,500 is increasingly likely if ETH can enter this area with strong volume.
Meanwhile, XRP is hinting at an early-stage bullish reversal, with the $2 level emerging as a reasonable short-term target if momentum continues to build. The recent behavior near the lower end of its descending channel reflects a shift, as sellers appear to be losing strength. XRP bounced off this lower bound after absorbing significant selling pressure, creating higher lows—an encouraging sign for potential reversal.
Even though volume remains muted, the current price action suggests the beginning of a more confident buyer presence. The 20-day and 50-day EMAs are still positioned above the current price, indicating that a definitive trend change may be premature; however, reclaiming the 20-day EMA could signal a stronger move toward the $2 target.
On the other side, Dogecoin has shown signs of stabilization after weeks of downward pressure, though it is too early to declare a complete bullish reversal. Recent price action indicates that buyers are starting to absorb selling pressure, with the price gradually rising from recent lows. Importantly, DOGE remains constrained by a descending trendline, which caps any rally until a breakout occurs.
The structure around $0.15 to $0.16 is noteworthy, as it demonstrates seller fatigue without further declines. The RSI is trending toward neutral following its recent lows, typically signaling a shift from panic selling to more controlled accumulation. Although volume is low, it has not reached new lows, which is necessary for sustained recovery.
A push toward $0.18 to $0.20 is plausible, as both the 50-day EMA and the midrange of the previous structure converge in this zone. Historically, Dogecoin exhibits volatile reactions when approaching this area. However, any rally is likely to stall unless the descending trendline is decisively broken with substantial volume. Thus, while a temporary rally seems feasible, it is not indicative of a full trend reversal until that resistance is overcome.
