ETH and ADA Price Analysis: Can Cardano and Ethereum Sustain Their Bounce?

As the largest altcoin in terms of market cap, ETH is perhaps the best reference to analyze the state of this segment of the crypto market while ADA’s performance could be indicative of how mid-tier blockchains are faring.

Both ETH and ADA are down 10% in the past week, while both have experienced double-digit losses since the year started. Surprisingly, ADA has performed better than Solana (SOL) in 2025, as the latter has experienced a much sharper drop of 26.9%.

On Tuesday, the United States Securities and Exchange Commission (SEC) received an application from NYSE Arca to list Grayscale’s Cardano spot exchange-traded fund (ETF).

This acknowledgment comes to join multiple others for similar vehicles linked to other altcoins like XRP and SOL. Investors believe that the majority of these ETFs will be approved by the SEC this year.

This would result in a major jump in ADA’s liquidity, as mainstream and institutional investors will find it easier to invest in the cryptocurrency.

ADA Bounces Off Critical Support Twice

ADA recovered from its early losses yesterday and buyers managed to push the price above the $0.66 level.

This raises the odds of a rebound for the native asset of the Cardano network, especially if it closes in positive territory today.

However, momentum indicators are still favoring a bearish short-term outlook as the Relative Strength Index (RSI) dropped below the signal line in previous days, while the MACD has started to post negative readings.

Staying above the $0.65 level would be critical to bulls to push ADA to recapture some of the territory they have lost in the past few months.

Two days ago, the Cardano Foundation enacted its first Constitution, a document approved by its community that provides clear guidelines for how governance decisions and proposals will be handled.

This landmark moment paves the way to build a fully decentralized protocol that can operate transparently. ADA may benefit in the long term from the stability that this new framework provides.

ETH Shows Robust Support Structure to Withstand the Turmoil

ETH was at the center of the storm as hackers managed to breach one of Bybit’s cold wallets storing thousands of these tokens. They have been progressively dumped on the market as part of Lazarus’ traditional money-laundering techniques.

However, Bybit rapidly replenished its ETH holdings to ensure they had a 1:1 coverage of customers’ assets.

The exchange’s swift actions may have contained the drop and could even prompt a rapid recovery as the market progressively digests the $1.4 billion worth of ETH tokens that were offloaded on such short notice.

Data from Coinglass shows that nearly $140 million have flowed out of ETH-linked spot exchange-traded funds (ETFs) since February 20, as investors were spooked by the implications of the hack and the market’s sentiment shift to fear.

From a technical standpoint, ETH’s bounce above the $2,330 support is encouraging for its short-term outlook. That said, the token is still on a sharp downtrend and exhibits one of the worst performances among the top 10 most valuable cryptocurrencies.

A trend reversal at this point doesn’t seem likely. For that to happen, the price would have to break above the $2,800 level, meaning a 14.7% jump from current levels.

Momentum indicators are still favoring bears as the Relative Strength Index (RSI) sent a sell signal just days ago while the MACD’s histogram also moved to negative territory.