Is It Altcoin Season? Here’s Why ETH Price Surge Is Crucial

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous bull runs and bear markets, but none quite like the one we are currently experiencing in the world of cryptocurrencies. The recent surge in altcoins like Solana (SOL), XRP, Cardano (ADA), Tron (TRX) has been nothing short of spectacular, with gains ranging from 15-90% over the weekend.

Over the weekend, digital currencies such as Solana (SOL), XRP, Cardano (ADA), and Tron (TRX) have been leading the way with significant gains ranging from 15% to 90%. While Bitcoin and Ethereum have held steady, this has sparked debate about whether we’re currently experiencing an “altcoin season.” However, it’s important to note that the current rally might not be considered complete without a surge in Ethereum’s price, as Ethereum, being the largest alternative coin, is taking a breather at around $3,000.

When Will the Altcoin Season Start?

The true surge hasn’t taken place just yet! Historically, alternative cryptocurrencies (altcoins) tend to excel during consolidation periods after substantial rallies in Bitcoin (BTC) and Ether (ETH). During these times, profits often shift towards smaller-cap coins. As per QCP Capital’s analysis, for an altcoin season to officially begin, the dominance of Bitcoin should dip below 58% from its current level around 60%.

According to QCP Capital’s recent report, the price of Solana saw a significant surge during the weekend, increasing by 17%. Currently, it is maintaining its position near the significant resistance level of $240. The analysts at QCP suggest that the pro-crypto stance of the Trump administration has sparked enthusiasm among cryptocurrency investors for an upcoming altcoin rally.

Additionally, it’s mentioned that the value of Bitcoin might reach $100K under beneficial circumstances. On the other hand, as the Trump administration returns to power in January, there may be an uptick in investor interest in altcoins due to expectations of supportive cryptocurrency regulations.

As a cryptocurrency investor, I’ve noticed that despite some outflows from the Bitcoin ETF last Thursday and Friday, Bitcoin has shown resilience with robust support. This strength is largely attributed to growing institutional interest in the digital asset. In fact, influential companies like MicroStrategy and Metaplanet have persisted in their significant Bitcoin purchases, even at levels as high as $90,000.

ETH Price Rally Remains Crucial

Despite the impressive returns seen in the altcoin market, the price growth of Ethereum hasn’t reached the anticipated level of increase. Following a peak of $3,444 in early November, Ethereum has experienced a dip of almost 10% since then. At this moment, the price of ETH is showing a minor recovery of 1.13%, having regained some strength at the $3,000 support level.

crypto analyst Ali Martinez points out that there’s a substantial area of interest around $3,000, with approximately 2.82 million wallets holding over 6.14 million Ether. This significant accumulation could serve as robust support for an Ethereum recovery, potentially contributing to the altcoin market rally.

Furthermore, based on the Ethereum Logarithmic regression model, there’s a projection that the price could peak at approximately $9,200 by May 2025. If historical trends continue, it might even surge to around $17,600. This suggests that analysts are predicting an altcoin boom in the coming year.

In a tweet from @intocryptoverse, they’ve presented an impressive data model for Ethereum ($ETH): During the initial cycle, the price peaked at level 10 and dipped down to level 2; in the subsequent cycle, it reached its peak at level 7 and bottomed out at level 4.

The range is getting coiled into a triangle

band 6 top by mid 2025 = $9.2k #Ethereum, band 7 = $17.6k…

— venturefounder (@venturefounder) November 19, 2024

Additionally, the Ethereum Exchange-Traded Fund (ETF) has experienced a surge in interest after Donald Trump’s election win, resulting in a shift towards positive net inflows.

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2024-11-19 10:32