‘Significant’ Ethereum Rally Signals New Altcoin Season
July 10, 2020 @ 12:38 +03:00
Ethereum price saw a bullish breakout against Bitcoin on July 9 and veteran trader Peter Brandt believes this could trigger a new altcoin season. Popular trader Peter Brandt believes that Ether (ETH) saw a significant breakout in its ETH-BTC pair on July 9. According to the veteran trader, the breakout could be a signal that a new altcoin season could occur in the near-term.
Brandt tweeted: “Significant breakout in ETH-BTC with target of .03276 BTC. Most alts should gain on Bitcoin in near future.” The strong performance of alternative cryptocurrencies in recent weeks coincides with an Ether rally and the expectation that upcoming network upgrades will solve the scaling issues that plague the network during peak transaction phases.
In the past week Cardano (ADA), Kyber Network (KNC), Compound (COMP), and Chainlink (LINK) four major altcoins recorded substantial gains against the U.S. dollar, Bitcoin, and Ether.
All four cryptocurrencies had key network upgrades, product launches, or high-profile announcements which drove their values higher.
The positive sentiment around alternative cryptocurrencies combined with exploding demand for decentralized finance-related tokens seems to have added to the confidence of investors.
According to data from Binance Futures, investors remain majority long on many altcoin pairs. In fact, more than 50% of traders on the platform are holding long contracts on LINK, ADA, KNC, and COMP.
Some traders predict the Ether rally will continue in the third quarter of 2020 due to a favorable market structure and currently the altcoin is testing a significant multi-year resistance level at $250. The altcoin briefly broke above this level three times in the past two weeks.
Ether trading volume has also remained relatively high throughout the past ten days as the price hovers above $240. This suggests that buyers are keen to push the price higher despite strong selling pressure at a key resistance area.
‘Significant’ Ethereum Rally Signals New Altcoin Season — Peter Brandt, CoinTelegraph, Jul 10