- Technical Outlook on Altcoins: Tightening the Noose on Ethereum and XRP

Ethereum is currently trading below the $2300 level, and technical analysis indicates weakness in its price, driven by the Moving Average Convergence Divergence (MACD) indicator which is below the signal line on the daily chart. Red histogram bars are still expanding below the zero line, which could push investors to sell Ethereum.

The Relative Strength Index (RSI) at 26.5 on the same chart indicates an oversold region, suggesting strong bearish momentum, but also implying that seller exhaustion could lead to a quick rebound toward the high of $2476 recorded on Sunday. Currently, the path of least resistance remains downward, with Ethereum looking toward the lowest level recorded on Monday at $2157.

Daily chart of ETH/USDT pair
As for XRP, bullish traders are holding onto immediate support at $1.60 after the recovery paused at the high of $1.66 on Monday. The path of least resistance remains downward, confirming the decline of the 50-day Exponential Moving Average EMA at $1.94, the 100-day EMA at $2.09, and the 200-day EMA at $2.24.

Daily chart of XRP/USDT pair
Investors are likely to continue reducing their risk exposure as the MACD drops below the signal line on the daily chart. However, the shrinking red histogram bars indicate an upcoming breakout with diminishing downside momentum.

Nevertheless, the RSI remains at 28.6 on the same chart, and continued decline is likely to trigger another wave of selling toward the support level at $1.50. Conversely, a daily close above $1.60 could encourage traders to increase risk, paving the way for another attempt to break above the high of $1.66 recorded on Monday.