Altcoins has been closely following the price history of Bitcoin and Ethereum lately. This is a positive sign of how far the markets have come in the past few weeks.
While in the past bitcoin rallies took place independently of the rest of the market, altcoins lagging or recovering during the consolidation phases, the entire market is now moving in tandem.
This trend has greatly favored altcoins, with many seeing massive gains in the past few days and weeks as BTC navigated towards $ 20,000.
A trader is now offering an upbeat outlook on altcoins, stating that Ethereum’s continued rally is leading them to be optimistic about the outlook for smaller digital assets.
Ethereum is now trying to hold above $ 600. If it can take this level to a strong support level, it could open the gates for the altcoin market to see a significant uptrend in the days and weeks ahead.
This will largely depend on Bitcoin as the benchmark cryptocurrency is struggling to break above $ 20,000, although it may hit new highs this morning.
If it extends that dynamic further and breaks above $ 20,000, the entire market will likely see massive capital inflows causing altcoins to see parabolic, speculative uptrends.
Ethereum is rising alongside Bitcoin
At the time of writing, Ethereum is trading over 4% from its current price of $ 601. This is a notable increase from recent lows of $ 490 at the end of the recent sell-off.
The sell-off that the entire market saw last week appears to have been a bear trap of epic proportions, with the strength in the period since ETH and BTC bottoming out has been quite impressive.
It appears that the recovery from these lows triggered the ongoing rally.
Trader claims ETH strength would likely trigger the altcoin rally
A dealer believes that the strength Ethereum has seen lately could be enough to spark a strong rally for altcoins.
He notes that he added Chainlink and some Uniswap tokens to take advantage of some of these potential benefits.
“I’m 20% old now, ETH Popping makes me very optimistic. Aim for 25% by mid-December and up to 50% will be stupid if BTC goes to ATH and they capitulate at the same time. 10% ETH, 5% LINK, 5% a basket full of scams, including uniswap coins. “
Image Courtesy of SalsaTekila. Source: ETHBTC on TradingView.
Whether or not Ethereum can hold above $ 600 in its daily candle closing should provide some serious insight into the trend in the days and weeks to come.
Featured image from Unsplash. Charts from TradingView.