For a considerable time, there has been an absence of a prolonged bullish trend in altcoins, leading to exhaustion among investors. Recent discussions have highlighted the weak capital flow into altcoins. Particularly, the ETHBTC chart vividly illustrates the stagnant movement, with some cryptocurrencies even falling below their previous prices. However, these sluggish movements might finally be concluding.
Beginning of the Altcoin Bull Run
Bitcoin $116,975 ‘s price has seen a decline of nearly 3%, while Ethereum $3,060 experienced a 2.5% increase. This follows Bitcoin’s rapid pullback from its all-time high of over $123,000. The drop is attributed to several factors, including a $10 billion whale sale, newly announced tariffs, inflation data, and geopolitical threats from Russia as stated by Trump. Despite these challenges, Ethereum’s resilience offers motivation for altcoin enthusiasts.
An analyst and investor known as Evanss6 suggests that the time for change might have arrived. The primary reason being the recent, genuine reversal signal in the ETHBTC pair, an occurrence not seen for a prolonged period.
“ETH continues to trade below the levels seen when ETFs were released, which seems incorrect. For the first time in over a year, ETHBTC has risen above the 200-day moving average. Several significant changes have occurred since then.
For example, Grayscale’s surplus supply has been eliminated. Ethereum has secured Saylor through Sharplink/Lubin. The Ethereum Foundation has undergone significant changes. The Trump administration canceled OCP2.0.”
If ETH begins to strengthen, this signals a potential rise for altcoins as well.
The Future of Altcoins
The reversal in the ETHBTC pair is crucial, yet it must be sustained. The transition from over 1,000 days of negativity impacts all altcoins. As seen in previous altcoin bull runs, ETH’s lead is vital as it paves the way for others, with altcoins potentially shadowing ETH as it approaches its all-time high.
Negotiations regarding tariffs will continue until August 1, with the Fed’s interest rate decision expected at the end of the month. Currently, negative factors like tariff letters are not hindering Ether’s progress. Given that major developments are clustered towards the end of the month, ETH has a chance to approach $3,500. Hence, altcoins might experience notable increases over the next two weeks.
The markets are set to be active again in August, and unless tariffs are further delayed, they will be absorbed by the markets. The extent, or even presence, of a drop remains uncertain. However, by September, the expectation is a renewed interest in altcoins due to potential altcoin ETF approvals, potentially priced in by the market earlier.
