Bitcoin and Ethereum Rally Stalls Amid Resistance

On January 7, 2026, Bitcoin and Ethereum paused their early-year recovery rally, stalling after significant price increases in the previous week across major cryptocurrency markets.

The stall indicates cooling short-term momentum despite supportive data, impacting major crypto assets like LINK and XRP  XRP -7.71% , with potential implications for future market movements.

Bitcoin and Ethereum’s initial 2026 growth has paused, reportedly stopping at key resistance levels.

This comes after an impressive first week where Bitcoin increased by approximately 7-8% and Ethereum jumped around 10%. Centralized derivatives venues and Bitcoin ETFs have seen notable growth in open interest and inflows. In recent weeks, open interest on platforms like Binance and Bybit surged, indicating rising engagement, particularly from ETF inflows.

These stagnations were reflected on January 7, with Bitcoin struggling to surpass the $95k resistance point, while Ethereum approached $3.2k. Altcoins like XRP and DOGE also saw substantial movements, illustrating market confidence at the start of the year. Looking further, stablecoin dynamics suggest accumulating “dry powder” on the sidelines, ready for deployment.

“We are witnessing a classic momentum pause after an impressive start to 2026. The combination of ETF inflows and stablecoin accumulation suggests significant buying power remains sidelined.” – Arthur Hayes, Co-founder, BitMEX Read more insights on this perspective

Despite this short-term stall in momentum, analysts remain optimistic about further movements, supported by positive ETF flows and increasing open interest. Prior cycles in early January provide context, showcasing similar trends of early year rallies followed by resistance-induced pauses.