Ethereum and XRP Flips Red on the 1-Month Scale. How Low Will They Go?

Ethereum had a massive slip a few hours ago and has yet to fully recover. It opened Wednesday at $3,980 and peaked slightly higher in the run-up to the month’s most anticipated event.

The FOMC meeting was one that many investors believed would lead to further increases in the crypto market. However, the result was not as many anticipated. 

Jerome Powell announced the anticipated rate cut, stating a 25-bps slash. He hinted at ending QT a few weeks ago, which made some proponents optimistic about its impact on the crypto market. The Federal Reserve chairman announced that QT will end in December. 

While the announcements showed strong bullish rhetoric, his next statement annulled them. He stated that another rate cut in the next two months is far from assured. Investors turned bearish following this statement, sending Ethereum back to Friday’s low. It dropped to $3.838 but has rebounded.

The altcoin was trading about 3% below its day’s high before rebounding. On the weekly scale, it is down by over 5%.

Last week, ETH slowly recovered from earlier losses and flipped green on the 1-month chart. However, price action this week saw the asset turn red again, and the last few hours deepened the loss. 

The recent change in price trajectory dashed the last sliver of hope for a significant increase in October. 

What Will Ethereum Do Next?

Ethereum has rebounded but remains at risk of further declines. However, an analysis by BitBulls suggests that the slip is not significant. He stated that as long as ETH holds the $3.8k-$4k zone, “there’s no reason to be bearish on Ethereum.”

He maintained that “ETH has a big leg up left which could send it above $8,000 this cycle.” His comments earned nods from others, with some suggesting a surge to $5k this month. Based on his assertions, the altcoin will surge soon.

Another analyst, Crypto Tony, said in a post a few days ago that the asset will slip even lower. He presented a chart that depicts a drop below $3k. Many in the comments disagreed with him, saying such a slip is not possible.

However, Tony’s assertion is not entirely off the mark. A previous analysis stated something similar, basing the prediction on the weekly bollinger bands. 

The outlook showed that the asset tested the upper boundary before pulling back a few weeks ago. It then hovered around this level for roughly eight weeks, indicating that a correction was likely given the indicator’s pattern.

Additionally, the Relative Strength Index dropped from 74 to 67 over the past week amid increased selling pressure, suggesting a shift toward neutral momentum. Analysts projected further downside in the RSI, with 50 as the next probable support level. The report ultimately forecast a potential 10% decline over the next month.

However, trading activity in September challenged that outlook as the asset rebounded from $3,835, closing the month with losses of just over 5%. Still, the report maintained that the risk of a slide toward $2,900 remains elevated.

This Week’s Close Is Important for Ethereum

Over the last three weeks, Ethereum has seen significant declines. However, during this period, it has registered progressively higher lows.

A closer look at the bollinger bands shows that the coin rebounded close to the SMA. It repeated this trend a few hours ago and is trading higher. Maintaining its recent low will keep the altcoin’s bullish structure intact. Holding the middle band on the 1-week chart means ETH will not slip below $3,800 in the coming weeks.

However, this prediction heavily relies on trading conditions remaining as they are. The altcoin risks slipping even lower in the event of further bearish fundamentals. 

In a nutshell, holding prices above bollinger’s SMA will seal the next breakout, but losing it increases the risk of a slip below $3k.

XRP Heads for Bearish Close

XRP was off to a good start in October, surging above  $3.10 during the first week. However, the uptrend was short-lived; it retraced afterward. It dropped to a low of $1.77 before rebounding. Price actions last week rekindled hopes of a bullish close to October, but recent price action raises questions about the likelihood of this happening. 

On the weekly scale, the altcoin registered a low of $2.54 but rebounded. The cryptocurrency succumbed to the prevailing market sentiment following the FOMC’s disappointment. Nonetheless, it is above $2.60, holding a level it held for most of the week.

However, its recent slip caused fear of further retracement. It is worth noting that since it experienced its biggest decline in the week starting Oct 6, the asset has since registered higher lows. For example, the following week it posted a low of $2.22, and last week it posted a low of $2.33.

The coin registered its highest low a few hours ago, and a close at this level will see its recovery remain intact. Nonetheless, the 1-day suggests a possible slip to $2.50 and a further drop to $2.36 if trading conditions worsen. 

XRP is Still Bearish on the Monthly

A recent outlook noted that the altcoin is printing sell signals on the charts. Price movements since July have followed a downward trajectory, with the latest retracement aligning with signals from the RSI. The Moving Average Convergence Divergence also reflects a comparable bearish setup. On the 1-month chart, the 12-day EMA is trending lower and appears on track to cross below the 26-day EMA.

The readings remain the same, and XRP risks further decline. It is essential to defend the $2.36 support, as a slip could result in a drop to $2.

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