Altcoin Update: Slight Dip in Ethereum and XRP

Ethereum is trading above $2900, but its rise is limited due to resistance at the $3000 zone. The smart contract token is also below the 50-day exponential moving average at $3248, the 200-day EMA at $3428, and the 100-day EMA at $3451, all indicating strong bearish outlooks.

A close below the short-term support level at $2900 could lead to further losses for Ethereum toward its November low of $2623, especially as the Relative Strength Index (RSI) on the daily chart drops to 40 within the bearish zone.

The MACD indicator suggests it is ready to confirm a sell signal on the same chart if the blue line crosses below the red signal line. However, a trend reversal above $3000 cannot be ruled out, especially if investors capitalize on the price dip. Nonetheless, a downward trendline is expected to break with strong bullish momentum above the 50-day EMA at $3248.

Daily ETH/USDT Chart

As for XRP, sellers are currently dominant, with its price hovering below $1.90 at the time of writing on Wednesday. The RSI on the daily chart approaches the oversold region, indicating increasing bearish momentum. Meanwhile, the MACD also confirmed a sell signal on the same chart, prompting investors to reduce their positions. The next major support level is the November low of $1.82, and breaking below this could accelerate the downward trend toward the April low of $1.61.

Daily XRP/USDT Chart

Despite the overall market trend toward risk aversion, institutional interest in XRP remains relatively stable, with ETF fund flows exceeding $1 billion and no outflows since launch. These steady inflows may encourage retail traders to re-enter the market, boosting XRP’s appeal and improving the coin’s potential to recover above $2.00 in the near term.