Ethereum Outperforms Bitcoin: Is The Altcoin Season Officially On?
November 24 2023 - 4:00PM
NEWSBTC
Ethereum (ETH) continues to absorb Bitcoin (BTC) selling pressure
in November, looking at price action when writing on November 24.
In the daily chart, ETH bulls have the upper hand, adding roughly
9% versus BTC from October lows. Ethereum Outperforms Bitcoin
In November ETH buyers are firm, with price action still confined
inside the conspicuous bullish engulfing bar of November 9. Despite
bears forcing prices lower in the second week of November, the
failure of BTC bulls to reverse all losses suggests that ETH buyers
are still in command. If anything, prices may rise in the days
ahead, reversing losses of the better part of 2022 when Bitcoin,
buoyed by a crash in the altcoin scene, forced capital to the
world’s most valuable currency. With Ethereum being
resilient, reading from its performance in the ETH/BTC chart, hints
suggest that the altcoin season could be in the early stages.
Should that be the case, it will be a reprieve for ETH and other
altcoins, including Cardano (ADA). Related Reading: Will
Recent Binance Events Trigger This Historical Bitcoin Bull Run
Signal? Following the dip in 2022, most altcoins capitulated, with
most falling by over 80% from 2021 peaks as the crypto winter
progressed, freezing gains. The situation took a turn south in 2023
when regulators continued with their enforcement actions against
CeFi facilitators, mostly exchanges like Binance and Coinbase.
Their decision negatively impacted liquidity, as evidenced in other
trending altcoins like Solana (SOL). ETH remains relatively firm at
spot rates versus BTC, extending gains in late November. This could
indicate that demand is beginning to pivot toward altcoins, with
ETH, the most liquid of them all, leading the way. Since other
altcoins have relatively thinner liquidity, they tend to recover
faster but generally align with ETH. If the ETH revival is
sustained, reading from the candlestick arrangement in the daily
chart, the leg up might also be accelerated by several macro
tailwinds. BlackRock Applies For Spot Ethereum ETF, Will ETH Reach
$26,800? In November, BlackRock, one of the world’s largest asset
managers, filed for a spot Ethereum ETF. It comes when the broader
crypto market expects the Securities and Exchange Commission (SEC)
to approve the first spot Bitcoin ETF in the country. This
application signals that BlackRock is confident about Ethereum’s
investment products. Related Reading: Market Watch: These 5
Altcoins Are Poised For Breakouts, Says Crypto Expert Additionally,
the on-chain analytics platform, Token Terminal, recently issued a
bold report forecasting ETH to reach $36,800 by 2030. Token
Terminal expects Ethereum to process over $14 trillion of the
finance industry’s value in the next seven years. Ethereum would
likely dominate at this pace, driven by sharp growth in
decentralized finance (DeFi) and other crypto sub-sectors. Feature
image from Canva, chart from TradingView
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024