The cryptocurrency market is undergoing significant changes, as highlighted by Benjamin Cowen's latest post. He states that what is happening now shouldn’t be called an 'altseason'; it’s an 'Ethereum season.'
State of the Cryptocurrency Market
Benjamin Cowen notes that altcoins, excluding Bitcoin and Ethereum, have dropped about 50% against ETH in recent months. This indicates a severe underperformance by most altcoins, even though some individual cryptocurrencies show growth.
Ethereum's Dynamics
Today, Ethereum's price jumped nearly 9% in a single day, reaching around $4,700, which is just 4% shy of its all-time high of $4,900. Current trends suggest that if it surpasses the psychological $5,000 mark, the market may switch to a 'full risk-on' mode.
Prospects for Altcoins
If Ethereum breaks its all-time high and pushes further into price discovery, it could trigger the next altcoin rally. Historically, altcoins often lag behind ETH during such runs, but once ETH peaks, capital rotation can lead to significant moves in smaller cryptocurrencies.
For now, the market is very much in an Ethereum season, and while altcoins will have their moment later, traders are focused on Ethereum breaking the $5,000 barrier.
