ETH and BNB: Market Dynamics and Future Prospects: Ready to bounce back?

ETH and BNB: Market Dynamics and Future Prospects: Ready to bounce back?

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Both Ethereum (ETH) and Binance Coin (BNB) experienced price declines over the past week, despite showing bullish patterns. Market indicators for both coins remained bearish.

Recent Performance

Last week, Ethereum and BNB struggled, with their charts showing red. However, a recent analysis suggests a potential trend reversal, hinting at a possible bull run for these top altcoins.

Market Data

Ethereum saw a 7% price correction last week, trading at $3,230 with a market cap of over $388 billion. Similarly, BNB’s price dropped by more than 2%, trading at $578 with a market cap of over $84 billion.

Potential for a Rally

A notable crypto analyst recently highlighted that altcoins have formed a textbook cup & handle pattern over the past few years. This pattern suggests that altcoins, including ETH and BNB, might soon enter a bull rally.

Current States of ETH and BNB

Analysis of market data reveals that BTC’s exchange reserve is increasing, indicating high selling pressure. However, the derivatives market looks optimistic, with a green funding rate and a dominant buying sentiment in the futures market.

For Ethereum, the daily chart shows a bearish crossover in the MACD and a downtick in the Relative Strength Index (RSI), suggesting that investors might need to wait longer for a bullish turn.

BNB’s social volume increased last week, reflecting its popularity, but its weighted sentiment remained negative, indicating dominant bearish sentiment. Like Ethereum, BNB’s technical indicators also suggest a potential price correction, with the MACD showing a bearish crossover and the RSI trending slightly downward.

Conclusion

While ETH and BNB have faced recent declines, the potential for a trend reversal and a subsequent bull run remains. Investors should keep an eye on these developments to make informed decisions.