Altcoin
How a 30% Rise to $5,000 Could Spark Altcoin Season
Ethereum price is at an important juncture with support at $3,400 tested and recovery above $3,600 underway. Bitcoin is starting to shape the next crypto landscape this week after recovering ground above $65,500. With the two largest cryptocurrencies modestly in the green, investors are starting to appreciate the sell-off as a blessing in disguise. This means they can apply key dollar-cost averaging practices, buy on dips, and possibly increase potential earnings in the second half of the year.
Factors That Could Drive the Next Altcoin Season
The cryptocurrency fear and greed index fell to 64, still showing investor greed but significantly below last week’s figure of 74. Alternativemonitors market sentiment with zero on the scale referring to extreme fear and 100 referring to extreme greed.
Since markets function as living entities, sentiment is driven by people. As the euphoria increases, investors become greedy due to FOMO. This pushes prices higher but also introduces the risk of a dramatic decline as some investors decide to take profits. It is rarely a good idea to buy when the cryptocurrency fear and greed index is near its extreme high.
On the other side of the fence, a drop in metrics suggests greed is creeping in. Because sentiment is collapsing, many people are choosing to sell, some out of fear of losing their capital or perhaps to protect unrealized gains.
It is advisable to buy when the market is red and sell when it is green. With this in mind, investors may consider this a good time to buy their favorite stock altcoinsignoring the drop in the Fear and Greed Index to 64.
Ethereum price rose 1.3% in 24 hours to $3,585 on Thursday. The growth in value, while slight, reflected a 0.81% increase in market capitalization to $438 billion. However, the second-largest digital asset risks a 30% decline in trading volume to $14 billion, a factor that is likely to hamper potential growth in the coming sessions.
However, investors appear to have their eyes on spot ETF approval. The Securities and Exchange Commission (SEC) approved the spot listing Ethereum ETF in May awaiting further approval from the operators of the products which will then start actual trading on the stock exchange.
The SEC also dropped its investigation into Ethereum, further dispelling doubts about whether Ether could be considered a security.
ETF analyst Eric Balchunas predicted earlier this week that Ethereum ETFs could begin trading on July 2. This followed word that the SEC “sent issuers comments on the S-1s today, and they’re pretty light, no big deal, asking them back in a week.”
The start of actual trading of Ethereum ETFs could spark new interest in ETH and altcoins. Traditional investors would find it easier to purchase ETH via exchanges, validating the cryptocurrency market.
Analysts at CoinGape expect this to be a moment of reckoning for altcoins like Solana, XRPand Dogecoin which are believed to be next in line for spot ETFs.
The move could be bullish for the entire cryptocurrency market, including Bitcoin, and perhaps usher in the long-awaited altcoin season.
Ethereum price sets a 30% breakout.
Ethereum price is making great strides in its recovery after the correction to $3,400. The token is currently above two exponential moving averages (EMAs), the 20-day and the 50-day one.
A daily close above the $3,600 resistance would mean the bulls are coming back into play for a breakout above $4,000. The presence of an inverse head and shoulders (H&S) pattern on the daily chart could strengthen the bullish hold once validated.
Ethereum Price Chart | Tradingview
This is a bullish pattern validated when the price breaks out of the neckline resistance around $3,800 Ethereum Price Prediction case. Traders would enter above this resistance aiming for a 30% move near $5,000.
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