An analysis of Ethereum's market trends this year shows significant activity reduction, which may affect the altcoin market.
Current Situation with Ethereum
Ethereum, the largest altcoin by market cap, has shown overall weakness in 2024. Although it recently surpassed $4,000, it struggled to maintain that level. Monitoring the ETHBTC pair is beneficial for assessing risk appetite towards altcoins. Its inability to stay above the 0.036 BTC level suggests further decline in altcoin values.
Forecasts and Expectations
For the last 113 days, ETH's price has hovered below the 0.042 BTC threshold. Despite significant BTC gains during this period, the broader cryptocurrency market did not benefit similarly. We have consistently observed a decline in the ETHBTC pair for the past 847 days, indicating that the anticipated altcoin season should commence soon. To conclude this cycle, ETH must regain levels around 0.087 BTC.
Impact on Altcoin Market
The ETHBTC pair already illustrates the overall status of altcoins. As BTC retraced back to $98,000, the noted decline in the ETHBTC pair became more apparent, leading to renewed selling in altcoins. Among the top 100 cryptocurrencies, APT, WIF, STX, and FTM Coin experienced declines of over 20% during the week, reflecting the market's dependence on BTC dynamics.
Analysis of current Ethereum and altcoin market trends indicates a challenging period ahead for investors. Close monitoring of ETH and BTC changes may become crucial in evaluating future market fluctuations.
