Ethereum (ETH) and XRP dropped on Tuesday, following Bitcoin’s decline as investor excitement over new crypto ETFs cooled. Ethereum fell 2.3% to $3,450, while XRP slid 5.1% to $2.41. Both coins mirrored Bitcoin’s drop to $103,177, extending the market’s pullback after a brief ETF-driven rally.
Profit-Taking and Technical Weakness
Traders sold off after last week’s sharp gains. Ethereum fell below the key $3,500 level, while XRP dropped back from its recent high of $2.58. Analysts said the declines were mainly due to profit-taking and technical corrections.
XRP’s trading volume jumped 46% as sellers dominated, while Ethereum saw a similar rise in trading activity. “The ETF boost didn’t last long,” said a CoinDesk analyst. “Investors are locking in profits and waiting for clearer signals.”
ETF Momentum Slows
The recent wave of crypto ETF approvals had lifted market sentiment, but inflows have since slowed. Bitcoin ETFs still attracted modest new investment, but Ethereum ETFs recorded no fresh inflows this week.
XRP’s upcoming ETF listings created some interest, with several products added to the DTCC list ahead of Bitwise’s expected launch. However, traders remain cautious as they await confirmation of official trading dates and investor demand.
Broader Market and Macro Pressures
The drop in crypto prices also reflects wider market caution. Investors shifted funds toward traditional stocks, while fading enthusiasm for AI-related assets weighed on risk sentiment. SoftBank’s reported sale of Nvidia shares added to uncertainty in both tech and crypto markets.
Analysts say upcoming U.S. inflation data could add more pressure. If inflation remains high, investors may continue reducing exposure to volatile assets like cryptocurrencies.
Institutional Investors Stay Active
Despite market weakness, institutional buying continues. Companies added both ETH and XRP during the dip, signaling longer-term confidence. Ethereum spot ETFs now hold over $12 billion in assets, while XRP’s pending ETF products could attract new institutional inflows once launched.
Machine learning forecasts suggest short-term downside for Ethereum toward $3,200, but potential recovery to $4,500 by December. XRP could rebound to $2.80 if ETF activity increases.
Outlook
Ethereum and XRP now face key support levels at $3,400 and $2.30, respectively. A stable Bitcoin above $102,000 could help the market recover, but any inflation shocks or ETF delays may trigger further selling.
For now, crypto markets remain cautious, with traders watching closely for ETF updates and economic data releases this week.
