Bitcoin Needs to Stabilize For ETH and Alts to Thrive. As has always been the case, the key to Ethereum and altcoins thriving is Bitcoin providing the ideal environment necessary.
At the time of writing, the crypto markets are a sea of red after Bitcoin fell hard from $55k levels to a local low of $47,500.
Many crypto traders are of the opinion that the dip was the result of a new proposal by President Biden’s administration to increase capital gains tax for wealthy individuals earning more than $1 Million a year. The proposal seeks to increase capital gains tax from the current 20% to 39.6%.
Bitcoin is yet to stabilize from the effects of the news. However, Ethereum has maintained a value above the crucial $2k price area and is currently trading at $2,240. Therefore, ETH still has the potential of reigniting the next phase of altseason. Caution is also advised when trading Bitcoin and altcoins using high leverage in the current market conditions.
- According to Rekt Capital, Ethereum hitting new ATHs will fuel the next phase of altseason
- Weiss Ratings concludes that Ethereum thriving will usher in an alt-season greater than 2017’s
- The premium on Grayscale’s Ethereum Trust has flipped back to positive
- However, Bitcoin’s recent dip to $47k has paused the continuation of altseason
- Bitcoin gaining a footing will be necessary for providing the stability needed for alts to thrive
Ethereum’s recent push to an all-time high of $2,644 is the fuel needed to drive the next phase of alt-season. This theory was highlighted and shared by crypto analyst @RektCapital, through the following tweet.
This $ETH breakout to new All Time Highs is going to serve as fuel for the next phase of Altcoin rallies#Ethereum
– Rekt Capital (@rektcapital) April 22, 2021
Current Altseason Might be Wilder than 2017’s
The team at Weiss Ratings went on to add to the theory of a new phase of alt-season through the following statement and accompanying chart.
This altcoin season looks like it might be significantly wilder than 2017. If the traditional altcoin cycle is true this time around, then we are just getting started with this move in ETH (chart by @rektcapital)
Premium on Grayscale’s Ethereum Trust Flips Back to Positive
The demand and bullishness surrounding ETH is evident in the premium of the Grayscale Ethereum Trust (ETHE) flipping back to positive. For the last two months or so, the premium had dropped into negative territory thus leading many traders to believe that institutions were no longer bullish on Ethereum.
The chart below, courtesy of Skew, provides a visual cue of the ETHE premium since January.