Ethereum (ETH) has experienced a modest 1% price increase over the past 24 hours, reflecting the broader cryptocurrency market’s uptrend. This rebound comes after a week-long decline, largely attributed to political tensions in the Middle East.

Although the rally offers temporary relief for ETH holders, BeInCrypto’s analysis indicates it may be short-lived. Weak on-chain demand and a persistent bearish sentiment surrounding the altcoin suggest that the recovery could struggle to maintain momentum.

Ethereum Witnesses Poor Demand

The negative readings from ETH’s price daily active address (DAA) divergence reflect the poor demand for the altcoin among market participants. This metric, which measures an asset’s price movements with the changes in its number of daily active addresses, is at -70.34% at press time. 

For context, DAA have remained negative despite its price rally since last weekend. Historically, when an asset’s price rises while active addresses decrease, it’s considered a sell signal. This suggests the rally is driven by speculation rather than real demand, implying that the price surge may be short-lived.

Read more: How to Invest in Ethereum ETFs?

Furthermore, Ethereum’s Parabolic Stop and Reverse (SAR) indicator, which helps identify trend direction and potential reversal points, reinforces the bearish outlook. Currently, the indicator’s dots are positioned above ETH’s price.

When the Parabolic SAR dots appear above an asset’s price, it signals downward pressure and suggests that the trend is likely bearish. Traders typically view this as an indicator to hold or consider initiating short positions, expecting further price declines.

ETH Price Prediction: August 5 Low on the Horizon

The Parabolic SAR dots above the price can act as a form of dynamic resistance. If the price tries to rise, it might face selling pressure near these dots, reinforcing the bearish trend.

These dots currently rest at $2620, suggesting that ETH will face a surge in selling pressure once it approaches this level. If selling pressure strengthens, Ethereum’s price risks falling 14% to its August 5 low of $2,116.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

However, if it witnesses a resurgence in demand, ETH may break above the resistance formed at the $2,700 price level and target $3,338.

XRP’s value has dropped by 17% over the past week, fueled by the broader market downturn and further impacted by the US SEC’s decision to file an appeal against Ripple.

Although buying pressure has weakened significantly over the past few days, traders in the XRP derivatives market remain optimistic.  This analysis explores whether or not the bets of these traders will produce favorable results in the near term. 

Ripple Long Traders Double Down

Despite the broader market downturn and the ongoing legal battle between the US SEC and Ripple, XRP derivatives traders maintain a bullish outlook. Long positions continue to dominate, reflecting investor optimism about XRP’s price potential.

This sentiment is supported by the token’s funding rate, which has consistently stayed positive. As of now, the funding rate is at 0.004%, indicating sustained confidence in XRP’s future growth.

Read more: XRP ETF Explained: What It Is and How It Works

A positive funding rate suggests a higher demand for long positions than short ones in the market. It occurs when traders are optimistic about an asset’s future price increases and, as a result, are willing to pay a premium to maintain their long positions.

However, XRP spot traders do not share this stance. They continue to sell their holdings amid fear of a significant price decline once the hearing of the US SEC appeal commences. The token’s negative Chaikin Money Flow (CMF) confirms the strengthening selling pressure.

As of this writing, XRP’s CMF is below the zero line at -0.03. This indicator measures money flows into and out of an asset. When its value is below zero, selling pressure is high as traders remove liquidity from the market to prevent further investment losses. 

XRP Price Prediction: Token Trades Below Key Moving Averages

XRP is currently trading below its 20-day exponential moving average (EMA) and its 50-day simple moving average (SMA). The 20-day EMA is a short-term indicator that quickly responds to price changes by averaging an asset’s closing price over the past 20 days. In contrast, the 50-day SMA provides a longer-term perspective by tracking the average closing price over 50 days.

These moving averages are key indicators for traders, often marking support and resistance levels. When an asset’s price drops below the 20-day EMA, it suggests a potential shift in momentum, possibly leading to further declines. A drop below the 50-day SMA typically confirms a bearish trend.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP is facing a potential 13% decline, which could see it drop to $0.46 if it continues to distance itself from these crucial averages. However, if sentiment in the spot market turns positive and demand rises, XRP’s price could rally by 25%, pushing it to $0.66.

BNB price has been struggling to break past a resistance block that has kept the altcoin subdued for the last seven months. The current resistance ranges from $575 to $619, and while BNB has shown bullish signals recently, it remains uncertain if the coin can breach this barrier. 

A successful break could bring BNB to a four-month high, but traders are closely watching to see if the momentum will hold.

BNB Has Hopes for a Rally

Over the past few days, Open Interest (OI) in BNB has declined by more than $100 million, indicating that traders are closing their positions. Interestingly, the funding rate is still positive, which suggests that short traders are the ones pulling out.

This could be a bullish sign for BNB, as fewer short positions would mean less downward pressure on the price. A reduced number of shorts could give BNB the boost it needs to rise through the resistance.

While the drop in OI might seem like a bearish indicator at first glance, the positive funding rate points to optimism in the market. If traders continue to withdraw their short positions, BNB could have the chance to finally break past the $575 resistance level and continue its upward trajectory.

Read more: How To Buy BNB and Everything You Need To Know

The overall macro momentum for BNB is looking promising, with the Relative Strength Index (RSI) showing signs of an uptrend. This indicator is currently just above the neutral line at 50.0, indicating that bullish momentum is building. Once the RSI flips 50.0 into support, it could signal further gains for the altcoin, driving its price higher.

As long as the bullish momentum continues, BNB may have a shot at breaching $575 and maintaining its upward trajectory. The critical test will be whether the momentum can hold long enough to push BNB through the $619 resistance level.

BNB Price Prediction: Strength Required

At present, BNB is trading at $567, sitting just below the key resistance block between $575 and $619. Over the past seven months, BNB has only breached $619 once, when it reached its all-time high (ATH) of $721. Breaking through this resistance would be a significant victory for the altcoin.

Given the current factors, a breach of the $575 level seems likely, but pushing past $619 may prove difficult in the short term. As Short-term profit booking is expected, traders should be cautious as this level may act as a ceiling.

Read more: BNB: A Comprehensive Guide to What It Is and How It Works

If BNB fails to breach $575, a drawdown to $550 could occur. Losing this support would invalidate the bullish outlook and potentially lead to further declines in price.