Cryptocurrency markets found their footing on Sunday after a rough week, with leading digital assets bouncing alongside stock futures as expectations for a Federal Reserve rate cut gained momentum.

Here's where the major cryptocurrencies stood as of 8:25 p.m. ET:

A Glimmer of Recovery After a Bruising Week

Bitcoin managed to punch through the $88,000 level during Sunday trading before retreating to the $86,000 range overnight. The real story here is volume: trading activity exploded 50% higher to reach $57 billion, signaling that traders aren't just sitting on the sidelines. That kind of volume surge typically indicates serious buying pressure and genuine interest, not just random noise.

Ethereum followed a similar pattern, rallying to an intraday peak of $2,856.45 before pulling back to the $2,700 zone.

The bounce comes after a painful week for crypto holders. Bitcoin dropped 8.82% while Ethereum fell 11.16%, with both blue-chip cryptocurrencies sliding to multi-month lows. These aren't the kind of moves that inspire confidence, but they're also the kind of setups that can create opportunities if you believe in the longer-term trajectory.

Liquidations across the crypto market hit $222 million in the last 24 hours, according to Coinglass data, with short position traders taking most of the pain. There's a bit of poetic justice there—betting against crypto during a rebound can be expensive. If Bitcoin manages to climb to $90,000, another wave of short liquidations could trigger, totaling roughly $292 million.

Bitcoin's open interest edged up 0.50% over the past day to $59.61 billion, while the Crypto Fear & Greed Index showed "Extreme Fear" still gripping the market. Fear can be a contrarian indicator, but it can also just mean people are scared for good reason.

Top Performers in the Last 24 Hours

Among cryptocurrencies with market caps exceeding $100 million, here are the standout gainers:

The global cryptocurrency market capitalization now sits at $2.95 trillion after increasing 1.3% in the last 24 hours.

Stock Futures Climb on Fed Rate Cut Speculation

The crypto rebound wasn't happening in a vacuum. Stock futures jumped overnight Sunday, with the Dow Jones Industrial Average Futures rallying 117 points, or 0.25%, as of 7:45 p.m. EDT. Futures linked to the S&P 500 spiked 0.43%, while Nasdaq 100 Futures gained 0.63%.

What changed? Expectations for a December rate cut surged following dovish comments from Federal Reserve policymakers, including New York Fed President John Williams and Governor Stephen Miran. When central bankers start sounding accommodative, markets listen.

According to the CME FedWatch tool, traders are now pricing in a 69% probability that the Fed will cut rates by 25 basis points in December, up dramatically from 44% just a week earlier. That's a significant shift in sentiment.

Investors will be watching Tuesday's October Producer Price Index report closely for additional clues about the Fed's next move on interest rates. And don't forget: the stock market is closed Thursday for Thanksgiving and will close early Friday at 1 p.m. ET, so trading volume could get weird this week.

Analysts Weigh In: Where to Buy Ethereum and What's Next for Bitcoin

Widely followed cryptocurrency analyst and trader Ali Martinez highlighted specific price levels where Ethereum could be accumulated ahead of "the next bull rally."

Martinez noted that ETH has been trapped in a channel since 2021, and a recent rejection at the top of that channel has pushed the cryptocurrency lower. "Ethereum could find support in the middle of the channel at $2,300, at $1,500, or at the bottom of the channel at $1,000 making these the most optimal levels to buy," Martinez said.

Those are some pretty wide ranges, which tells you something about the uncertainty here. But if you're a believer in Ethereum's long-term prospects, having a shopping list of price targets isn't the worst strategy.

Meanwhile, Michaël van de Poppe, another popular cryptocurrency commentator, applauded Bitcoin's "good bounce" and predicted a climb to the $90,000-$96,000 range before BTC establishes a new base. That would represent a solid recovery from current levels and potentially set up the next leg higher—or at least provide some breathing room for rattled holders.

The big question now is whether this bounce has legs or if it's just a brief respite before more downside. With Fed policy expectations shifting, trading volumes elevated, and key technical levels in play, the next few weeks could determine whether crypto markets have genuinely turned a corner or just hit a speed bump on the way down.