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Altcoin updates: Ethereum rise then erasing its daily gains
Ethereum is trading at just below $3,300 after correcting from its intraday high of $3,369. The smart contract token remains below key moving averages, including the 200-day exponential moving average at $3,596, the 100-day exponential moving average at $3,905, and the 50-day exponential moving average at $3,949, which reinforces the negative outlook.
The MACD indicator has maintained a sell signal since Monday, with red histogram bars below the average line, reinforcing bearish expectations. The relative strength index (RSI) trending downwards at 32 indicates that the bearish momentum is increasingly likely to hinder a potential recovery of Ethereum towards the 200-day exponential moving average at $3,596. Should the decline accelerate, the key areas of interest for traders are $3,057, which was tested on Tuesday, and $2,880, which was previously tested in June.
The daily chart for the ETH/USDT pair
As for the Ripple coin (XRP), its daily gains have retreated, leading to a retest of the short-term support level at $2.18 at the time of writing this report on Friday. Sellers have a significant advantage, as the Relative Strength Index (RSI) on the daily chart has dropped to 36 after a brief bounce to 42 on Wednesday.
Investors are likely to lean towards the decline, pointing to a sell signal from the MACD indicator since Tuesday. The trend may remain bearish as long as the blue line remains below the red signal line, as the indicator generally retreats.
The daily chart for the XRP/USDT pair
The death cross is a bearish pattern that occurs when a short-term moving average crosses below a long-term moving average. In the daily chart above, the 50-day exponential moving average at $2.58 is about to cross below the 200-day exponential moving average, reinforcing the bearish outlook.
However, if the bulls seek to expose themselves by buying the dip, XRP may resume its upward trend, targeting highs above the convergence of the 200-day and 50-day exponential moving averages at $2.58.