Ethereum, often dubbed the king of altcoins, has seen a significant price increase of 21% over the past week, contrasting with Bitcoin's modest rise of 0.6%. This shift raises questions about the potential onset of a new altcoin season.
Ethereum's Growth and Bitcoin's Dominance Decline
As the overall cryptocurrency market hovers around a valuation of $4 trillion, Bitcoin's share has dropped to 61%, marking its lowest point since March. The decline in Bitcoin's dominance has piqued investor interest in altcoins, evidenced by the altcoin index rising to 41, confirming an acceleration in capital flow towards other cryptocurrencies.
Ethereum's Prospects: Targeting $4,800
The technical outlook suggests that breaking the resistance zone between $3,600 and $3,900 could confirm the start of a robust new surge for Ethereum. Surpassing these levels positions the next target at revisiting the previous peak of $4,800. Both individual and institutional buyers are anticipated to continue showing interest in Ethereum, as current data indicates a potential shift in preference towards this cryptocurrency.
Technical Analysis and Forecasts
According to analytical data, despite the positive growth momentum, indicators like the RSI remain below the overbought threshold of 70. This maintains optimism for further growth. For the current trend to sustain, it is crucial that the influx of new buy orders reinforces the performance gap between Bitcoin and Ethereum.
Ethereum's 21% rise amidst Bitcoin's declining dominance highlights investor interest in altcoins. Key resistance levels should be monitored as they could determine future price movements.
