Latest crypto news: ADA price attempts to recover, but ETH faces key resistance

The cryptocurrency market in January 2026 presents a subtle balance. Cardano’s ADA, after experiencing a decline, is consolidating within a key range of $0.35 to $0.40.

Meanwhile, Ethereum is striving to stay above $3,100. Analysts point out that regaining and holding above $3,200 is crucial for its short-term trend.

According to the latest data from the Gate platform on January 20, ADA’s trading price is approximately $0.36, down about 2.90% in the past 24 hours, while ETH’s trading price is around $3,115, a decrease of about 2.3% in the same period.

01 Market Pulse

The cryptocurrency market at the beginning of 2026 swings between hope and caution. At the start of the new year, ADA experienced a strong rebound, quickly climbing from the support zone of $0.33–$0.35 in December, testing resistance levels of $0.42–$0.43.

However, this rally was short-lived. After losing the critical psychological and technical level of $0.40, ADA faced renewed selling pressure.

At the same time, Ethereum’s performance also reflects the overall cautious sentiment in the market. ETH mostly stayed above $3,200 during the trading session on January 20 but dipped into the $3,100 region towards the close.

Market sentiment indicators show a fear and greed index reading of only 13.79, in the “Extreme Fear” zone. Under this emotional backdrop, the movements of the two major mainstream tokens are particularly noteworthy.

02 ADA’s Technical Dilemma and Potential Turning Points

From a technical perspective, ADA is currently at a critical juncture. The $0.40 support level has now turned into resistance, and the price is consolidating below this previous support, with intraday lows around $0.36.

Broader technical structures indicate that $0.35 has become a vital support level. This price not only marks the bottom of the December sell-off but also aligns with previous accumulation zones.

If ADA can hold this line, the overall structure remains intact; otherwise, a sustained break below $0.35 could open the downside towards $0.30.

A noteworthy positive signal comes from on-chain data. Since January 12, wallets holding between 1 million and 10 million ADA have accumulated approximately 100 million tokens, worth over $36 million.

Meanwhile, a bullish divergence is forming on ADA’s daily chart, similar to the pattern that triggered a 32% rally at the end of 2025. These signals suggest that despite weak prices, some long-term holders remain confident in ADA’s future.

03 ETH’s Critical Battle and Market Expectations

Ethereum is currently facing a crucial battle. According to analysis on January 20, ETH must regain and stabilize above $3,200 to stabilize market sentiment and avoid further declines.

From a technical standpoint, ETH’s short-term outlook appears somewhat bearish. The price has broken below key levels of the Alligator indicator: the Jaw at around $3,168, the Teeth near $3,206, and the Lips approximately at $3,230—all above the current price.

This arrangement typically indicates that sellers still dominate the market. Additionally, the MACD indicator has turned negative, with the histogram showing red, and the MACD line crossing below the signal line, signaling that the bullish momentum from early January is waning.

However, analysts note that Ethereum is currently in a compression phase of an upward trend, possibly forming an ascending triangle. Despite ongoing attempts by bears to push the price lower, each dip is met with buying support, creating higher lows along the ascending trendline.

Once ETH breaks through the $3,400 resistance, the price could quickly advance toward $4,000 or even higher. This outlook adds a glimmer of hope to the current consolidation.

04 Market Dynamics and Institutional Perspectives

From a broader perspective, both Cardano and Ethereum are influenced by a series of market dynamics and institutional actions. Derivative data for Cardano shows that leverage usage is decreasing, and market positions are becoming more cautious.

Nevertheless, some long-term indicators remain positive. For example, Cardano’s deflationary model limits new ADA supply, supporting long-term network growth.

Additionally, the Leios upgrade on Cardano has been completed by 67% and is progressing toward mainnet launch. Increased activity in the DeFi sector also boosts on-chain demand and stability.

For Ethereum, CME Group has announced plans to launch ADA futures contracts, currently awaiting regulatory approval. Meanwhile, Grayscale’s spot Cardano ETF is under review by the U.S. Securities and Exchange Commission (SEC), with a decision expected in early 2026.

Market sentiment data from Gate shows that 67% of investors are optimistic about Cardano, indicating that despite weak prices, market sentiment is gradually recovering.

05 Interplay and Outlook: The Symbiotic Relationship of ADA and ETH

As leading smart contract platforms, Cardano and Ethereum often exhibit a certain degree of correlation in their price movements. In the current market environment, both show consolidation characteristics, but their challenges differ.

For ADA, the key is to regain $0.40 and stabilize above the $0.42–$0.43 resistance zone. A successful breakout could open the way toward $0.50 or higher.

Technical analysis suggests that if the broader cryptocurrency market remains stable or moderately bullish, Cardano could gradually rise to the $0.55–$0.75 range in 2026. Achieving this requires ADA to first regain $0.50 and confirm a shift in market structure.

For ETH, the immediate goal is to re-establish above $3,200 and gradually restore market confidence. In the medium term, $3,400 is a more critical resistance level; breaking through it could signal a stronger upward trend.

Both face common challenges, including overall risk appetite in the crypto market, regulatory changes, and capital rotation among different crypto assets. Currently, market sentiment remains fragile, and any negative news could trigger a new wave of selling pressure.

Future Outlook

On the real-time charts of the Gate exchange, the price curves of ADA and ETH resemble two intertwined rivers, wandering near key technical levels. ADA is seeking a new support point around $0.36, with on-chain data showing wallets holding between 1 million and 10 million ADA quietly increasing their holdings.

Meanwhile, ETH struggles above $3,100. Its Alligator indicator’s three lines are all above the price, forming a temporary technical cage. The fear and greed index points to an extreme fear level of 13.79, but it is often in such environments that new trends quietly emerge.