The Bitcoin price has enjoyed a rapid increase since October 25 while riding a wave of positive momentum stemming from China. Additionally, while some altcoins based in China have also increased in value, major ones are still lagging behind. Two such altcoins left behind are Ethereum and Binance Coin.
The news on Ethereum’s front has been lacking since its co-founder was spotted with several Chinese investors. However, the launch of the new protocol, Ethereum 2.0, is approaching. Meanwhile, there is nothing on the Binance Coin (BNB) front.
The technical outlook for Ethereum (ETH) looks significantly more bullish than BNB’s — suggesting that a breakout is likely.
Cryptocurrency trader @Cubantobacco stated that the time is right for some major altcoins to begin increasing.
Expecting top majors to start catching up. Send it 🇨🇳 pic.twitter.com/ITwdbj8Ubw
— cuban (@cubantobacco) October 29, 2019
He outlined two bullish patterns for ETH and BNB, respectively — suggesting that they will soon break out. Let’s take a close look at both of them and decide if this is the case.
Ethereum
Ethereum just broke out from the descending wedge it had been trading in since July 9. It did so after creating a double bottom near $160. However, the breakout transpired with low volume and the succeeding bearish doji had high volume — somewhat diminishing the chances of a continued upward movement.
The closest resistance area is found at $230.
In the short-term, Ethereum is trading inside an ascending triangle. This is likely to act as a continuation pattern after the previous breakout.
The bullish outlook is strengthened by the bullish cross of the 100- and 200-day moving averages (MA). This makes us believe that Ethereum may move towards the previously outlined resistance area.
Binance Coin
The Binance coin price is not following any long-term trading patterns. Rather, it is trading inside a short-term ascending wedge. Additionally, while the price has been making higher highs, there is bearish divergence developing in the RSI. The closest support area is found between $18-$19.
Contrary to Ethereum, the outlook for BNB looks bearish and we would expect a decrease towards the support area.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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