An altcoin rally may be imminent, especially as Ethereum (ETH) shows positive signs compared to Bitcoin (BTC). Key points in this analysis include:
1. Signs of a breakout in the ETH/BTC pair
• Formation of a symmetrical triangle on the monthly timeframe indicates the possibility of a bullish breakout.
• Currently, the ETH/BTC price is trading close to the support level of the triangle, which is often a positive signal when a bullish trend could start from here.
• Targets for ETH/BTC include important levels such as 0.0540, 0.0859, and 0.1202, if these resistance levels are broken.
2. Impact on ETH/USDT
• The price of Ethereum is currently trading around $3,200, but a breakout in the ETH/BTC pair could pull ETH/USDT back up to $4,000.
• If Ethereum reaches a new all-time high (ATH), this could stimulate excitement across the entire altcoin market.
3. Spillover effect to other altcoins
• When Ethereum experiences strong growth, other altcoins often benefit from capital flows moving from Bitcoin to riskier assets.
• An 'altcoin season' could be triggered if investors begin to focus on higher returns from smaller altcoin projects.
Factors to watch
• Bitcoin's performance: Bitcoin needs to remain stable to create a favorable environment for altcoin development.
• Important technical thresholds: Closely monitor resistance and support levels in the ETH/BTC and ETH/USDT pairs.
If the current situation continues, an altcoin rally could indeed occur, and this presents a good opportunity for investors with the right strategy. However, it is always necessary to consider risks, especially in a market phase that still holds many fluctuations.