Bitcoin, Ethereum, XRP rebound ahead of Fed decision: Crypto today

• Bitcoin trades above $81,000. Its recovery gathers pace as markets await the Fed’s next interest rate decision.
• Strengthening momentum indicators support Ethereum’s second consecutive daily advance.
• With the MACD approaching a buy signal, XRP bulls seek to reassert control of the trend.

Bitcoin (BTC) is back above $81,000 on Wednesday. The renewed advance is improving cryptocurrency market sentiment ahead of the Federal Reserve’s (Fed) forthcoming interest rate decision.

Following Bitcoin’s lead, Ethereum (ETH) is approaching $2,400 as bulls appear to add exposure. Improving momentum indicators are also supporting Ripple (XRP), which is moving higher above $1.33.

Fed rate decision approaches as crypto gains

Against a backdrop of heightened inflation concerns and high oil and energy prices linked to persistent Middle East geopolitical tensions, the Federal Open Market Committee (FOMC) is due to announce its interest rate decision later on Wednesday.

CME’s FedWatch Tool puts the probability of unchanged rates at 91%, in line with broad expectations. Traders will instead scrutinise Fed Chair Kevin Warsh's post-meeting press conference for indications of the policy outlook.

With inflation still above the 2% long-term target, persistent price pressures remain a key challenge for the Fed. Warsh has repeatedly stressed the regulator’s commitment to lowering inflation, although the US economy continues to show resilience.

In emailed commentary, Ian Weisberger, Co-founder and CEO of CoinRoutes, said: “This is a nervy week for crypto. In the space of three days, traders face a Fed rate decision, results from the biggest tech companies in the world, and around $12 billion worth of bitcoin bets expiring on Friday,” adding, “Then the US midterms land next Tuesday.”

$81,494: Bitcoin tests recovery traction

At $81,494, Bitcoin is consolidating within the upper half of its recent Bollinger Bands range, leaving the short-term outlook broadly neutral. Underlying support comes from the 50-day Exponential Moving Average (EMA) at $80,831, which remains below the price. However, Bitcoin has yet to clear the Bollinger middle band at $81,941, indicating that upward momentum remains tentative.

Neither momentum gauge points to dominant buying pressure: the Relative Strength Index (RSI) is near neutral at 48, while the Moving Average Convergence Divergence (MACD) remains below zero.

A sustained move through initial resistance at the Bollinger middle band around $81,941 would bring the upper band near $84,056 into focus as the next obstacle. Immediate downside support sits at the 50-day EMA around $80,831. Should the consolidation break lower, a deeper retreat would put the lower Bollinger band near $79,826 in play, where buyers would be expected to respond more decisively.

$2,374: Ethereum bulls regain ground

A second consecutive daily gain has brought Ethereum to $2,374, though the outlook remains cautiously bearish. Spot prices are still beneath both the Bollinger middle band around $2,421 and the 50-day EMA near $2,452.

Sellers have not secured full control despite the weaker broader structure. The pair remains just above rising trendline support near $2,369 and above the lower Bollinger Band at approximately $2,305.

Bullish conviction remains limited, as reflected in an RSI near 41. The MACD is still negative, but its shrinking downside readings indicate that bearish momentum is beginning to fade rather than strengthen.

To clear the first resistance hurdle, Ethereum needs a sustained break above the Bollinger Band middle line around $2,421. That would open a route towards the 50-day EMA near $2,452, followed by the more demanding upper Bollinger Band barrier around $2,537, where advances could falter. On a retreat, the reclaimed trendline area near $2,369 offers immediate support, followed by the lower Bollinger Band around $2,305. A daily close below the latter would likely leave ETH vulnerable to a deeper correction.

$1.33: XRP bulls protect crucial support

Trading above $1.33, XRP is seeing bulls strengthen their position in an effort to reclaim control of the trend. Near-term upside nevertheless remains constrained. The price is just below the 20-day Bollinger middle band around $1.33 and beneath the 50-day EMA near $1.36. Despite a slightly positive MACD reading, that positioning leaves the broader outlook mildly bearish.

An RSI around 46 points to a lack of directional momentum, favouring consolidation over a forceful breakout. Meanwhile, the established descending resistance trendline, projected from above $1.70, still governs the medium-term structure.

A daily close above the first resistance level, the Bollinger middle band at $1.33, would put the 50-day EMA near $1.36 in view. The upper Bollinger band around $1.41 would then become the next upside objective. The lower Bollinger band near $1.26 provides the first significant technical support. Losing that level would likely revive selling pressure and open the way for a deeper retracement within the prevailing downtrend channel defined by the falling resistance line.

(The technical analysis of this story was written with the help of an AI tool. Know more.)