Ethereum and XRP cryptos fall by 6%: Are these altcoins entering a buy zone?

Market Analysis

The altcoin market has shed $50B in the past three days amid Bitcoin's deepening pullback, which has dragged top gems such as Ethereum and Ripple [XRP].

Technical Analysis

Ethereum [ETH] has dropped by another +6%, effectively slipping below $2.62K, which has been a key short-term support level that has held up against selling pressure in September. XRP [XRP] has dumped from $1.5 to an October low of $1.38, marking a 7.3% drop.

Macro Landscape

While the recent shakeout has opened a potential discounted window for late bulls, the macro landscape has not fully resolved. The US CPI data and Fed rate decision at the end of the month could extend the pullbacks and offer better buying levels. For Ethereum [ETH], the September support zone of $2.4K or lower at the 200-day MA could offer better buying levels. For XRP [XRP], the immediate support zones at $1.35 and the 200-day MA below $1.30 could trigger a reversal.

Market Outlook

The altcoin rally is nearing neutral, according to the Altcoin Season Index, and the Crypto Market Fear and Greed Index is back to neutral, indicating a potential reversal. However, the bearish sentiment could trend lower if the Fed decision persists. Leveraged short-sellers still have opportunities to extend their gains from the current 5% to over 10% for Ethereum [ETH]. For XRP [XRP], a sustained dip below the 200-day MA would effectively flip the market structure bearish and invalidate the bullish reversal outlook.

Conclusion

In conclusion, while the recent pullback has opened a potential discounted window for late bulls, the macro landscape is not fully resolved, and the pullbacks could extend until the US CPI data and Fed rate decision. Bulls (both leveraged bulls and spot investors) could gain control at the September support zone of $2.4K or lower for Ethereum [ETH], and at the immediate support zones at $1.35 and the 200-day MA below $1.30 for XRP [XRP].