XRP and Ethereum Bulls Are Back, But History Signals Caution: Analysis

XRP and Ethereum hit five-week FOMO highs as XRP trades near $1.06 and ETH remains down 65% from its 2025 high.

Sentiment toward XRP and Ethereum has turned bullish again as traders return to large-cap crypto assets. Recent sentiment data shows both tokens reached their highest FOMO readings in five weeks.

The shift comes while prices remain under pressure near key technical zones. XRP is trading near $1.06 after a long decline from its 2025 highs.

High crowd optimism can create short-term risk when prices are already dipping. Crypto markets often move against the strongest crowd view during emotional periods.

At the same time, Ethereum’s value case has returned to market discussion. Some analysts say ETH fundamentals remain stronger than recent price action suggests.

Bullish Sentiment Hits Five-Week High

Santiment Intelligence said sentiment is no longer fearful across Bitcoin, Ethereum, and XRP. However, the firm said the mood is not balanced across the three assets. XRP showed the strongest bullish crowd reading on Monday.

According to Santiment Intelligence, XRP recorded 3.02 bullish comments for every bearish comment. Ethereum followed with 2.31 bullish comments for every bearish comment. Bitcoin stayed calmer at 1.40, which the firm described as more neutral.

The firm said Bitcoin and Ethereum opened stronger before fading lower during the day. That move came while XRP and ETH entered FOMO territory. This can raise short-term risk when bullish comments rise during price weakness.

Ethereum Fundamentals Challenge Price Weakness

TedPillows said the key question for Ethereum investors is how ETH gains value. He noted that Ethereum is down about 65% from its August 2025 all-time high. However, he said activity, adoption, and network strength have continued to improve.

His view separates Ethereum’s market price from its network fundamentals. This matters because investors often compare price weakness with actual blockchain use. Stronger activity can support long-term interest, even when price action remains weak.

TedPillows said Ethereum fundamentals tell a different story from the chart. Still, stronger fundamentals do not guarantee a quick recovery in the market. Traders are watching whether bullish sentiment supports ETH or adds short-term risk.

Read also: XRP Short Squeeze Risk Grows as $3.9M Liquidation Leverage Stacks Above $1.15

XRP Struggles Below Key Recovery Zone

The TradingView daily XRP/USD chart shows XRP trading near $1.0666 on Bitstamp. Price remains close to a recent low area after falling from 2025 highs. The wider chart still shows lower highs after XRP dropped from above $3.

XRP is trying to stabilize near the $1.05 to $1.00 support area. A break below $1.00 could increase pressure toward $0.95 or $0.90. On the upside, XRP needs a daily close above $1.15 to $1.20.

XRP daily chart trades near $1.06986
XRP daily chart trades near $1.06986, Source| TradingView

The MACD shows a small positive crossover, with the histogram near 0.00127. The RSI sits near 39.89, which remains below the neutral 50 level. XRP remains cautious until price reclaims the $1.15 to $1.20 resistance zone.

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