The altcoin market declined sharply over a three-day period, losing $50 billion in value as Bitcoin's pullback pressured major cryptocurrencies including Ethereum and Ripple's XRP token.
Ethereum fell 6% on Wednesday, dropping below the $2.62K level that had provided support in September. XRP declined 7.3% from $1.5 to an October low of $1.38.
Key Support Levels Under Watch
For Ethereum, the next significant support zone sits at the September level of $2.4K, with further downside potential toward the 200-day moving average at $2.1K. Traders monitoring XRP identified immediate support at $1.35 and a 200-day moving average below $1.30.
The overhead resistance for XRP is positioned at $1.5, which would represent a 13% increase from current levels if reached.
Market Sentiment Shifts to Neutral
The Altcoin Season Index indicates that momentum from the third-quarter rally has cooled considerably in October and is nearing neutral territory. The Crypto Market Fear and Greed Index has similarly returned to neutral levels after showing greed sentiment during the Q3 rally.
Upcoming macroeconomic events could influence the direction of these pullbacks. The U.S. CPI data scheduled for next week and the Federal Reserve's rate decision at month's end remain key catalysts that could extend market weakness or trigger reversals.
