While analysts were not convinced of a possible “altaseason“ the rise of Ethereum in the last month (+18.8%) places it very close to US$3,000a value that even exceeded for a few minutes and which had not played since April 2022.
Of course Bitcoin, The locomotive of the crypto ecosystem has a lot to do with it: well, what is good news for the largest cryptocurrency by market capitalization, It’s good for the rest of the industry. and that leads many analysts to consider that this price movement sparks a bull market for ETH. This process seems to have already begun and the market reads it as a possible return of the altseason.
However, Ether’s good performance also occurs while awaiting the possible approval of a Ethereum exchange-traded fund (ETF) by the US regulator, the Securities and Exchange Commission (SEC), which, according to Polymarket, there is a 45% chance of it being approved before May 31.
Thus, it is worth remembering that the last time ETH was quoted close to US$3,000 was in April 2022when it reached a high of $2,966, before plunging into a prolonged bear market that took its price to $883 in June of that year.
Ethereum: the rise of crypto under the scrutiny of analysts
And, as he explains well Iñaki ApezteguiaChief Research Officer of Crossing Capital, to Ambit, this increase in value could be related to a set of elements. First of all, it highlights the impact of soraa new initiative in artificial intelligence that has generated great interest and expectation in the market.
Apezteguia points out that Vitalik Buterin, co-founder of Ethereum, even noted in a tweet that artificial intelligence could play an important role in identifying and resolving code errors on the Ethereum platform. In addition, it indicates that this crypto is “in the final testing stage of the Dencun update.”
“If this test is successful, the mainnet-level upgrade is expected to take place in late February or early March, which could be contributing to the current bullish sentiment,” warns Apezteguia.
This means that the fact that Ethereum is about to undergo a major upgrade could be building confidence among investors. And of course, mentions the seven applications related to Ethereum ETFs currently under evaluation in the US, since “Regulatory approval would open new opportunities and further legitimize cryptocurrency“.
In this context, the analyst raises the possibility that Ethereum is assuming a more leading role than Bitcoin in terms of capital flow. However, it will be necessary to continue observing how these elements develop and whether this change is confirmed. in the dynamics between Bitcoin and Ethereum.
The start of the altseason
Let us remember that the altseason, or altcoin seasonrefers to a period in which cryptocurrencies alternatives to Bitcoin they experience an increase in their value, whether with or without the direct influence of BTC. And, as he explains Damián Bertuettia journalist specialized in the crypto market, “we are experiencing one of the most important moments for alternative cryptocurrencies to Bitcoin.”
In the words of Bertuetti, it is a cycle in which historical increases, exponential movements that include falls and logical corrections and “in which new opportunities with great potential appear daily, as is the case of Ethereum (ETH)“.
The expert recalls that with Bitcoin in sight, which is expected to happen in April, “all cryptocurrencies could be boosted.” For Bertuetti, 2023 was the great recovery and “2024 will be a great year for investors who have already begun to set their goals on altcoins, such as ETH, ADA, MATIC, DOT and others, and want to make profits in the short term.
In that same line it is expressed Santiago Amatfinancial YouTuber and teacher, who asserts that the crypto market experiences a cascade effect, where initially it is Bitcoin that increases, followed by Ethereum.
Thus, what is known as the “altseason” begins, explains Amat, who agrees with the other analysts that the strong rumors about the approval of an Ethereum ETF, the proximity of Halving and “the competition between Ethereum and Cardano, highlighting the personal dispute between the creators of both cryptocurrencies,” adds an additional element to the panorama. Well, both platforms aim to create smart contracts, which intensifies the rivalry between them in the market.
Source: Ambito
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