According to market analysts, the long-awaited altcoin season is finally upon us. The strengthening of the Ethereum (ETH) price and the momentum in altcoin projects are increasing these expectations. Will the positive outlook of ETH trigger movement in the altcoin market? Here are expert opinions and details…
Ethereum in Altcoin Season
Ethereum’s rising price expectations are drawing investors’ attention. Wintermute’s Jake Ostrovskis stated that the increasing positive expectations for ETH are directing capital to altcoin projects. Ostrovskis stated that the increase in volatility and strong demand in the options market are increasing confidence in ETH’s potential.
The increase in volatility seen in the options market shows that traders are optimistic about the future of ETH. This situation will also be positively reflected in altcoin projects. If ETH continues this momentum, other altcoins may move in the same direction.
Altcoin Season Status
Crypto analyst Nicholas Merten shared a significant development that points to altcoin season. The decline of Bitcoin’s market dominance could present an additional rally opportunity for altcoins. Additionally, the “Others” index, which tracks the altcoin segment, gained momentum by breaking above the 200-day moving average.
However, according to Blockchain Center’s Altcoin Season Index, a full-fledged altcoin season hasn’t started yet. The index currently sits at 50%, meaning that only half of the top 50 coins have outperformed Bitcoin in the past three months. For a true altcoinseason, that number needs to rise above 75%.
Conditions of the Expected Season
Similar altcoin movements have occurred in the past in July and September. However, these momentums ended with Bitcoin’s dominance increasing again. Glassnode founders stated that for a full altcoin season to occur, Bitcoin needs to rise above $100,000 and its market dominance needs to decrease.
The ETH/BTC ratio is a key indicator of altcoinseason. ETH gaining strength against BTC could be a positive sign for altcoins. However, Wintermute’s Ostrovskis says that this ratio is not yet at a level that would support a strong altcoin season. He says that the ETH/BTC ratio should rise steadily for several sessions.
The Future of Altcoins
Ethereum and other altcoins are greatly affected by market volatility. However, there are key factors that investors should follow carefully. Bitcoin’s price and market dominance will determine the sustainability of the altcoin season. A clearer picture may emerge in the market by the end of the year.
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