XRP Could Retest $2.3 and ETH Could Explode to $4,100 – Here’s Why

However, the two tokens are still in positive territory in terms of their 7-day performance as the market has been recovering from its latest pullback.

Ethereum has kept marching onward to the $3,000 level despite the latest weakness but it has entered a phase of consolidation.

This is supportive of a bullish price move as consolidations are often interpreted as an accumulation move that anticipates a strong breakout.

The Pectra upgrade is currently the strongest tailwind lifting the price of ETH as this technical improvement to the top smart contracts platform has a tremendous impact on its efficiency and scalability.

Meanwhile, Ripple has been on a mild downtrend after the token jumped near its all-time high a few months ago as market participants are waiting for a catalyst for the next big move.

XRP Bounces Off Key Support at $2.25

XRP has broken below a key support at $2.28 that we highlighted in our previous price prediction for this token as a relevant level for market participants.

As a result, the price nosedived to the $2.2 area, which was the next key level to watch ahead of the weekend.

XRP has already bounced off this marker during the Asian session. When the American session starts, higher trading volumes will likely confirm if this support will hold or not.

In case of a bearish breakout, traders could wait for a retest to confirm the move and this would provide a great entry for a short position with a robust risk-reward ratio if the take-profit level is set at around $2.16.

Meanwhile, in case of a strong bounce, the $2.28 level would be the key resistance to watch. However, it is highly likely that the market will aim to retest the $2.3 resistance next if this support bounce is confirmed.

The 4-hour Relative Strength Index (RSI) shows that negative momentum is accelerating as the oscillator dropped below its 14-day moving average.

Meanwhile, the 9-period and 21-period exponential moving averages (EMAs) have crossed below the 200-period EMA. This ‘death cross’ also favors a bearish outlook for XRP in the near term.

Bullish Pattern Favors Push to $4,100 for ETH

We are about to reach our bullish price target of $3,000 for ETH after a historical pattern that offered strong upside potential repeated almost to the letter.

Now that we are close to hitting that mark, what could happen to Ethereum afterward? Can it keep rising or will that be its short-term top?

Looking at the daily chart with a clean slate, another bullish pattern has emerged that sets an even higher target for the top altcoin.

The chart above shows a cup and handle pattern that has formed in the past few months. This pattern has a neckline, which is the key level to watch. If a bullish breakout occurs, it will confirm a positive outlook for ETH.

The height of the cup is typically used as a reference to set a target. In this case, ETH dropped by 49% since the neckline formed. This means that the pattern could deliver a 49% gain if a breakout is confirmed.

Typically, when the price breaks out, it should retest the trend line from above next. If that happens and the price bounces, it confirms the cup and handle pattern and could result in an explosive move that could propel ETH to $4,100.