Bitcoin jumped from $74,500 to $78,500, while Ether climbed from $2,200 to $2,300. Short covering and bargain buying fueled the recovery.

Over the weekend, heavy selling pushed Bitcoin down to $74,500 and dragged Ether to $2,200. 

However, prices reversed quickly. By Monday, Bitcoin traded around $78,500 and Ether crossed $2,300. Exchanges recorded $2B–$5B in liquidations, while trading volume surged. 

News tied to Kevin Warsh’s Fed nomination also added pressure, and thin order books made price swings sharper.

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Why Bitcoin And Ether Fell So Sharply

Concerns over future interest rate policy triggered the first wave of selling. As prices dropped, leveraged traders faced margin calls.

Exchanges began closing positions automatically, adding more sell orders to the market.

Bitcoin broke below the $75,000 support level, which accelerated losses. Funding rates jumped, and many traders rushed to exit positions at once. 

With fewer buyers available, prices fell faster than usual. The result was a chain reaction that pushed both Bitcoin and Ether to their lowest levels in weeks.

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How The Market Bounced Back

Once prices stabilized, short sellers rushed to close positions. This created strong buying pressure. At the same time, long-term traders saw an opportunity to buy at lower prices.

Bitcoin climbed back to $78,500, while Ether recovered to $2,300.

Trading activity increased across major exchanges, confirming renewed interest. Liquidation data shows most forced selling ended before the rebound began.

On-chain data points to moderate exchange outflows, which suggests some investors moved assets to private wallets. However, large holders showed limited accumulation. Resistance between $80,000 and $85,000 slowed further gains and kept the rally in check.

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What Comes Next For Crypto Prices

Several signals will shape the next move for Bitcoin and Ether. Strong and consistent trading volume is needed to support the recent rebound. ETF activity and institutional flows will also remain critical, as steady inflows can help stabilize prices.

Key support levels sit at $73,000 and $69,000 for Bitcoin, and $2,000 for Ether. If prices fall below these zones, another wave of selling could follow. U.S. economic data and Federal Reserve updates will continue to influence market direction.

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Should You Invest $1,000 In Bitcoin or Ether Now?

Before you invest in Bitcoin, you’re going to want to read our next premium crypto alert which will be published in the coming days. We will reveal key crypto assets to consider in 2026 with explosive potential.

Read our latest alert here: Major Support Being Tested in Crypto – This Is The Point For a Bounce to Develop

Since 2017, InvestingHaven’s blockchain research service has been guiding investors through both bull runs and crypto winters.