The cryptocurrency market is showing signs of weakness mid-week as bullish momentum fades across major digital assets. Bitcoin (BTC), Ethereum (ETH), and XRP are all experiencing downward pressure, raising concerns about a potential correction in the near term. With key technical levels breached or tested, traders and investors are reassessing short-term outlooks for these top-tier cryptocurrencies.
This analysis dives into the latest price movements, technical indicators, and potential scenarios for Bitcoin, Ethereum, and XRP — helping you understand what might come next in this volatile market cycle.
Bitcoin Faces Downward Pressure Below $106,000
Bitcoin dropped below the $106,000 mark on Wednesday, extending a two-day decline of 2.47%. After a strong 7.32% weekly gain that pushed BTC above $108,000 last week, the flagship cryptocurrency faced resistance and began correcting early this week.
As of writing, BTC is trading around $106,100. The immediate focus for traders is on the 50-day Exponential Moving Average (EMA) at $104,245. A daily close below this level could signal further downside, potentially targeting the psychological support zone at $100,000.
👉 Discover how market sentiment shifts can impact Bitcoin’s next move.
On the daily chart, the Relative Strength Index (RSI) sits at 51 — hovering near the neutral 50 level. This suggests indecision among market participants. For bearish momentum to solidify, the RSI would need to drop below 50. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing signs of a potential bearish crossover, with the MACD line nearing a cross below the signal line. If confirmed, this would generate a sell signal.
However, if the 50-day EMA holds as strong support at $104,245, Bitcoin could resume its upward trajectory toward its recent high of $111,980 set on May 22.
Market watchers should monitor volume patterns and macroeconomic factors such as U.S. inflation data and Federal Reserve commentary, which often influence BTC’s price action during critical junctures.
Ethereum Breaks Key Support – Is Further Decline Imminent?
Ethereum has also entered a period of consolidation after failing to hold crucial support at $2,461. The second-largest cryptocurrency closed below its 50-day EMA at $2,428 on Tuesday and is currently trading near that level.
A breakdown below this point increases the risk of a deeper pullback, with initial downside targets around $2,111 — the low recorded on June 22.
The daily RSI stands at 47, below the neutral threshold of 50, indicating growing bearish momentum. While the MACD lines remain intertwined — reflecting market hesitation — any downward divergence could reinforce selling pressure.
👉 Learn how technical breakouts shape Ethereum’s price path.
On the upside, if ETH regains strength and closes above $2,461, it may restart its rally toward the next resistance level at $2,724. This zone represents a key hurdle for bulls aiming to reestablish control.
Ethereum’s fundamentals remain strong, supported by ongoing ecosystem growth in decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-2 scaling solutions. However, short-term price action will likely be driven by broader market sentiment and BTC correlation.
XRP Struggles to Break Resistance – Pullback Risk Rises
XRP failed to close above its key resistance level of $2.23 on Monday and subsequently dropped nearly 3% the following day. As of Wednesday, the price hovers around $2.18.
If selling pressure continues, XRP could retest the next major support zone at $1.96. This level could act as a floor depending on overall market conditions and investor confidence.
The daily RSI is currently near 50 — suggesting balanced buying and selling forces. A decisive drop below this level would favor bears and increase the likelihood of further downside.
Conversely, a sustained breakout above $2.23 could open the door for a rally toward $2.47 — XRP’s high from May 23. Such a move would require strong volume and positive market sentiment to sustain momentum.
Despite regulatory clarity improving over recent months, XRP remains highly sensitive to broader crypto trends and liquidity flows.
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Frequently Asked Questions (FAQ)
Q: Why is Bitcoin dropping despite recent gains?
A: Bitcoin is undergoing a technical correction after a sharp rally. Key indicators like the MACD and RSI suggest weakening momentum. A close below the 50-day EMA at $104,245 could trigger further selling.
Q: What is Ethereum’s next support level if it continues falling?
A: If Ethereum extends its decline, the next significant support lies at $2,111 — the low from June 22. Holding above this level will be crucial for maintaining bullish structure.
Q: Can XRP recover if it stays above $2.00?
A: Yes. As long as XRP holds above $1.96–$2.00 support, there remains potential for recovery. A confirmed close above $2.23 would strengthen bullish prospects.
Q: How reliable are EMA levels in crypto trading?
A: EMAs are widely used in crypto due to high volatility. The 50-day EMA often acts as dynamic support or resistance and is closely watched by institutional and retail traders alike.
Q: Should I sell my holdings during this pullback?
A: Decisions should align with your risk tolerance and investment strategy. Short-term traders may take profits near resistance; long-term holders often view pullbacks as accumulation opportunities.
Q: What triggers sudden reversals in cryptocurrency markets?
A: Reversals can stem from macroeconomic news, exchange inflows/outflows, whale movements, or unexpected regulatory developments. Monitoring on-chain data and sentiment helps anticipate shifts.
Final Outlook: Caution Amid Volatility
Bitcoin, Ethereum, and XRP are all navigating critical technical junctures. While none have broken into full bearish territory yet, the loss of key support levels increases downside risks in the short term.
Traders should watch:
- BTC holding above $104,245 (50-day EMA)
- ETH reclaiming $2,461 for bullish continuation
- XRP breaking and closing above $2.23 to invalidate near-term bearish bias
👉 Stay ahead with real-time data and advanced charting tools.
Volatility remains a constant in crypto markets. Whether you're a day trader or long-term investor, using technical analysis alongside sound risk management is essential for navigating uncertain phases like this one.
As we progress through 2025, expect increased institutional participation and regulatory clarity to play larger roles in shaping price direction — but for now, technical levels remain the dominant force guiding market behavior.
Monitor these assets closely over the coming days. The next few candlesticks could determine whether this is just a healthy pullback or the start of a deeper correction.