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Will Ethereum's Rally Against Bitcoin Spark an Altcoin Season?

Will Ethereum's Rally Against Bitcoin Spark an Altcoin Season?

Nov, 22 2024 18:35
Will Ethereum's Rally Against Bitcoin Spark an Altcoin Season?

On the morning of Friday, November 22, Ethereum (ETH) toppled Bitcoin (BTC) in price gain as ETH registered an 8% surge in the last 24 hours while BTC spiked less than that as the market opened today.

The 8% price gain drove Ethereum to the $3,383.97 trading point while Bitcoin was at $98,384 aiming to hit the $10,000 mark which it nearly did by the end of the day. This ETH price rally has further strengthened speculations of an oncoming ‘Altcoin Season” with similar surges seen in Solana, Cardano and XRP.

The market capitalization of Ethereum also spiked by 7.73% to touch $407.61 billion while the trading volume gained 46.45% in the last 24 hours to reach $51.51 billion as markets opened on November 22.

This growth in Ethereum’s value has drawn the investors’ attention as they are trying to align themselves to Donald Trump’s pro-crypto policy-related price rally in addition to the ongoing bullish sentiment.

Although the crypto market has been speculating about an Altcoin Season for over a week now, it hasn’t materialized yet because crypto investors are reluctant to fully invest in altcoins like XRP, SOL, ADA and others as they want to capitalize on Bitcoin hitting the $100,000 mark. Now, that has nearly happened, the Altcoin Season is likely to set in by the weekend.

Data from the past has shown that altcoins always make massive surges when Bitcoin reaches a consolidation phase after a significant rally as seen recently. This makes the profits roll into tokens with a smaller market cap.

As of Friday, Bitcoin’s dominance was 60% which led analysts to forecast that the altcoin season will get triggered once BTC dominance goes below 58%. The Altcoin Season Index currently shows a 33 value which means the bullish trend will continue.

All this points towards the growing acceptance of altcoin despite Bitcoin being investors’ preferred choice. This could lead to a possible breakout and the recent ETH rally might make it happen.

At the time of writing, Ethereum was trading at $3300, down 1.01% in the last 24 hours with a 22% decline in its trading volume which stood at $38.60 billion and its market cap went down to $398.07 billion.

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