- Technical Outlook on Altcoins: Strengthening Recovery Test for Ethereum and XRP

Ethereum is trading between two key levels: support at $1900 and resistance at $2000. Although the Relative Strength Index (RSI) at 29 is in the oversold zone on the daily chart, it has shown a slight rebound, supporting the possibility of a sudden upward move.

The MACD indicator also shows signs of bullish momentum reversal, but it must cross above the signal line on the same chart first to confirm this shift. The shrinking red bars on the histogram are likely to encourage investors to take on more risk as they rise above the zero line and turn green.

A decisive break above the $2000 level would strengthen the bullish trend and point to the red resistance zone around $2150. However, Ethereum may accelerate its downward trend toward its lowest point last Friday at $1747 if it closes below $1900.

Daily chart of ETH/USDT pair

As for XRP, buyers are striving to regain control, but its current position, well below the 50-day exponential moving average at $1.76, the 100-day EMA at $1.97, and the 200-day EMA at $2.16, confirms the overall bearish momentum. All three moving averages are trending downward, reinforcing this bearish outlook.

Meanwhile, the Relative Strength Index remains at 33 (not in the oversold zone) on the daily chart, indicating a delicate balance between buying and selling forces. An extended rebound toward the midline would tilt the scales toward buying and increase the likelihood of the bullish trend continuing toward the high of $1.54 last Friday.

Daily chart of XRP/USDT pair

Although the MACD indicator is still below the signal line on the same chart, it is poised to rise above it. This move could encourage traders to take on more risk and support a steady recovery. However, XRP’s price remains volatile, and the correction could extend to its lowest point on October 10 at $1.25.
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