BTC, ETH, XRP Technical Analysis: Ethereum Gains Momentum as Bitcoin Faces Outflows

Ethereum Spot ETFs recorded significant inflows of $136.9 million on Monday, as shown in the chart below. These inflows highlight growing institutional confidence in Ethereum (ETH) as a preferred investment option in cryptocurrency. On the other hand, Bitcoin Spot ETFs experienced outflows of $258.2 million, marking the third consecutive withdrawal. This trend highlights a decline in institutional demand for Bitcoin (BTC), aligning with the token’s recent price slump.

Ethereum’s momentum is supported by positive developments, including the SEC’s approval of the first Bitcoin-Ethereum ETF and the expected inclusion of staking benefits in Ether ETFs. These factors have strengthened Ethereum’s appeal as a top choice for institutional investors.

Moreover, BlackRock’s iShares Ethereum Trust recorded a single-day inflow of $292 million, highlighting growing investor interest. Ethereum ETF reported $1.66 billion in inflows for December, accounting for 74% of total inflows since inception. Ethereum’s price also supports this momentum, stabilizing around $3,500 and remains bullish.

On the other hand, XRP stabilized at higher levels after a strong price surge in November and December. The Federal Reserve’s rate cuts in December led to a surge in the US dollar, causing a decline in cryptocurrencies. However, XRP’s decline was limited, supported by positive developments that strengthened its outlook for the next potential surge.

Bitcoin (BTC) Technical Analysis

Bitcoin Daily Chart – Ascending Broadening Wedge at Target Zone

The daily chart for Bitcoin shows that the price has reached the target zone of $105,000 and is consolidating around this level. This consolidation has formed an ascending broadening wedge pattern, indicating strong volatility. The price also touched the 50-day SMA at approximately $94,600 before reversing higher. This reversal occurred within the support zone of the ascending broadening wedge. A break above $108,000 could trigger the next upward move, while a break below $90,000 may lead to a deeper correction.

Bitcoin 4-hour Chart – Double Bottom

This ascending broadening wedge pattern is also visible on the 4-hour chart. The price correction from record levels has reached the support of the ascending broadening wedge and formed a double bottom around $92,500. A break above $99,200 will confirm the double bottom and signal the next move higher toward $110,400. Conversely, a break below $90,000 could extend the price correction toward $85,000.

Ethereum (ETH) Technical Analysis

Ethereum Daily Chart – Reversal at Support

The daily chart for Ethereum shows that the price broke the black trendline in November and reached the resistance at $4,080. A price correction from this resistance retested the black trendline and formed a reversal candle. This reversal candle indicates increasing interest in Ethereum and suggests positive momentum toward $4,080 again. The 50-day SMA supports the reversal, and the RSI is turning upward. A break above $4,080 is required for Ethereum to start the strong move upward.

Ethereum 4-hour Chart – Ascending Broadening Wedge

The 4-hour chart for Ethereum shows the formation of an ascending broadening wedge. The price is rebounding from the support of this wedge, indicating positive traction. However, the emergence of a double top within the wedge limits the upside potential and maintains bearish pressure. A break below $3,000 would extend the downward momentum in Ethereum, while a break above $4,080 is necessary to confirm further upside potential.

Ripple (XRP) Technical Analysis

XRP Daily Chart – Bull Flag Pattern

The daily chart for XRP shows the formation of a bull flag pattern. The price correction has already hit the Fibonacci retracement level of 38.2%, around $1.98, which is the first support for this correction. The second and third support levels are at 50% and 61.8% Fibonacci retracement levels, measured from November’s low. A break above $2.87 will likely initiate the next strong upward move.

XRP 4-hour Chart – Positive Price Action

The 4-hour chart for XRP shows that the price has formed positive price action by consolidating within a channel. A break above $2.87 is required to maintain the upward momentum. The RSI remains above the mid-level, indicating bullish momentum in XRP.