XRP may be preparing for a strong move against Ethereum after forming a bullish divergence amid months of corrections.
Market analyst CryptoInsightUK highlighted this setup in his latest analysis, suggesting that the XRP/ETH daily chart indicates that XRP could be on the verge of pushing higher.
XRP Forms Bullish Divergence Against Ethereum
For context, the pair has been observing lower lows since May. Specifically, XRP first dropped to 0.0009398 ETH on May 11, then fell further to 0.0008069 ETH on June 11, and reached another low at 0.0006571 ETH on August 14.
However, despite these successive declines, the Relative Strength Index (RSI) has been showing the opposite trend. On May 11, when the pair bottomed at 0.0009398, the RSI recorded an extreme low of 18.92. Yet, by August 14, even though the pair slipped to a lower low of 0.0006571, the RSI posted a higher low of 27.24.
This pattern of falling prices but rising RSI readings forms a bullish divergence. For the uninitiated, this suggests that even though XRP looks weaker against Ethereum on the surface, it has actually been building strength in the background. Historically, these divergences often lead to reversals and fresh rallies.
XRP/ETH, XRP/USD, and ETH/USD All Indicate XRP Could Rip
Meanwhile, another analyst, CrediBULL, identified trends from three charts: XRP/ETH, XRP/USD, and ETH/USD. According to him, all three charts suggest XRP might be looking to recover against Ethereum in the mid-term.
Notably, on the XRP/ETH chart, he explained that the pair has dropped into his downside zone of interest, sitting between 0.0006 and 0.00072. XRP/ETH now trades around 0.0007120, a level that sits right in the middle of this range.
The market analyst noted that XRP reached this point following a three-month correction against Ethereum, a pullback that came after a massive 700% surge between November 2024 and April 2025.
Meanwhile, for XRP/USD, CrediBULL pointed out that XRP has now spent nine straight months consolidating above its highest monthly close on record.
This close happened in January 2025, when XRP finished the month at $3.03. Holding steady above that level for so long shows that XRP has been absorbing selling pressure and could be looking to surge higher.
On the other hand, Ethereum has been on a remarkable run of its own. From June to August, ETH jumped from around $2,100 to $4,247, putting it within reach of its all-time high above $4,800.
XRP Set to Recover While ETH Could be Entering Consolidation
CrediBULL explained that ETH has already completed a five-wave impulse move from its June lows, which makes a cooling-off period very likely. He expects ETH to pause and consolidate at these levels as traders take profit and the market adjusts to the recent surge.
Bringing these pieces together, CrediBULL said the setup favors XRP in the near term. Specifically, Ethereum looks ready to take a pause after the recent run, while XRP has already observed its pause by consolidating for months. As a result, if ETH forms its own consolidation while XRP recovers, the XRPETH pair could spike higher.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
