Bitcoin price started a recovery wave from the $81,200 zone. BTC is consolidating losses and facing hurdles near the $83,500 resistance level.

• Bitcoin started a decent recovery wave above the $82,200 zone.
• The price is trading below $83,200 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $83,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it clears the $83,500 zone.

Bitcoin Price Faces Resistance

Bitcoin price extended losses below the $82,500 support zone and tested the $81,200 zone. BTC formed a base and recently started a decent recovery wave above the $82,200 resistance zone.

The bulls were able to push the price above the $82,500 and $83,000 resistance levels. The price even tested the 23.6% Fib retracement level of the recent decline from the $89,042 swing high to the $81,177 low. However, the price is struggling to continue higher.

Bitcoin price is now trading below $83,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $83,200 level. The first key resistance is near the $83,500 level. There is also a connecting bearish trend line forming with resistance at $83,500 on the hourly chart of the BTC/USD pair.

The next key resistance could be $84,500. A close above the $84,500 resistance might send the price further higher. In the stated case, the price could rise and test the $85,500 resistance level. Any more gains might send the price toward the $86,000 level or 61.8% Fib retracement level of the recent decline from the $89,042 swing high to the $81,177 low.

Another Decline In BTC?

If Bitcoin fails to rise above the $83,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $82,200 level. The first major support is near the $81,200 level.

The next support is now near the $80,500 zone. Any more losses might send the price toward the $80,000 support in the near term. The main support sits at $78,800.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $82,200, followed by $81,200.

Major Resistance Levels – $83,500 and $85,000.

Ethereum (ETH) continues to underperform in the broader cryptocurrency market, currently trading just below $1,800 after falling 4% in the past 24 hours. Despite a strong start to the year, where the crypto market experienced bullish momentum, ETH has failed to sustain its upward trajectory.

Since slipping below the $3,000 level, the asset has largely ranged downward and has now breached the $2,000 support zone, signaling weakening demand and sentiment.

While Bitcoin and other major digital assets still managed to see some recovery efforts in recent weeks, Ethereum’s price decline has been accompanied by decreasing network activity and weakening on-chain fundamentals.

This divergence has raised concerns over ETH’s short-term outlook and prompted a fresh analysis of the underlying causes driving the asset’s performance.

Fee Decline and Network Inactivity Fuel Inflationary Pressures

CryptoQuant analyst EgyHash recently published a report highlighting key on-chain metrics that suggest Ethereum’s current market weakness is closely tied to its declining fee economy and user activity.

According to the report titled: “Why Ethereum Is Bleeding Value: Fee Crash Meets Hyperinflation Hellscape.” Ethereum’s network is experiencing its lowest levels of activity since 2020.

Daily active addresses have declined steadily since early 2025, and average transaction fees have dropped to record lows. This reduction in activity has led to a sharp fall in Ethereum’s burn rate, a metric crucial in offsetting inflationary pressures following the network’s transition to proof-of-stake.

The Dencun upgrade, which was expected to enhance network efficiency, has coincided with an extended period of low transaction volumes, further reducing fee income and contributing to higher net ETH issuance.

EgyHash concludes that the confluence of weak network engagement, reduced burn rate, and high token inflation is central to Ethereum’s declining valuation.

Why Ethereum Is Bleeding Value

“Ethereum’s recent underperformance can be largely attributed to diminished network activity, as evidenced by declining active addresses and reduced transaction fees.” – By @EgyHashX pic.twitter.com/fgQJYCrOIn

— CryptoQuant.com (@cryptoquant_com) April 3, 2025

Ethereum Technical Outlook Signals Potential Support

Despite on-chain headwinds, some technical analysts maintain a cautiously optimistic view. Trader Courage, a technical analyst on X, noted that Ethereum is currently testing a major support zone and could rebound toward the upper resistance of its current trading range.

$ETH / #ETH 1H chart

Back at the green support line. Looks like we could be heading towards the top of the range.

Key levels are on the chart.#Ethereum pic.twitter.com/rRX8b3b6nW

— Trader Courage (@CryptoCourage1) April 3, 2025

Another market analyst, CryptoElite, shared a long-term ascending trendline that ETH has respected historically. Based on this trend, the analyst believes ETH could still have the potential to rally to $10,000 later in the year, provided broader market conditions improve.

Featured image created with DALL-E, Chart from TradingView