Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) could face another correction, with significant downside liquidity acting as potential target, according to a prominent trader.
Why Will Ethereum Drop?
Trader Cryptoinsightuk said on Oct. 12 that he opened a short position in Ethereum, targeting a potential decline toward $2,200. His decision is based on the altcoin’s bearish divergence on the hourly chart as prices approached a major resistance zone.
Factors driving the rebound:
- ETH’s recent recovery occurred on declining trading volume and weak price action, suggesting a corrective rebound rather than a sustained bullish move.
- Significant liquidity resting below current prices could attract another downside move before ETH resumes its uptrend.
The trader is targeting $2,200 with a tight stop-loss and an estimated 9:1 risk-to-reward ratio.
On the other hand, he acknowledged that Ethereum could rally toward $2,700 without necessarily invalidating the broader bearish setup.
Will XRP Drop To $1.22 Before A Rally?
In an Oct. 11 analysis, Cryptoinsightuk revealed that he has placed a buy order for XRP at $1.22, anticipating another wave of selling across the cryptocurrency market.
It has been a key level for months and could align with an untested range low, the trader noted on Oct.9
XRP holding above the level would also be a positive sign of strength.
The trader suggests reducing leverage, reassessing existing buy orders and preparing to accumulate cryptocurrencies at lower prices.
Why Another Crypto Sell-Off Could Be Bullish
Cryptoinsightuk warned that Ethereum could drop 10%-12%, while other altcoins may face 10%-15% corrections.
Another sell-off could trigger investor panic and encourage aggressive short positions, potentially setting up a sharp bullish reversal.
He suggested ETH could briefly break below its trading range before recovering, creating a foundation for renewed momentum.
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