Ethereum Price Surge Sparks Altseason Speculation, Experts Urge Caution
tl;dr
Ethereum (ETH) is experiencing a price increase, sparking hopes of an ‘Altseason’. The price of ETH reached its highest point in 22 months on February 19, approaching the $3,000 mark. However, experts express concerns and advise caution, as an altcoin rally might not occur as quickly as expected.
Ethereum on the Rise
The price increase of Ethereum is primarily due to the upcoming Dencun upgrade and the mainnet launches of the scaling solution Blast and the restaking platform EigenLayer. “Ethereum has underperformed BTC in the past year, it seems like it is time for a catch-up,” comments Henrik Andersson, Chief Investment Officer of Apollo Capital. He added that Ethereum could catch up due to supply shortages and deflation since the transition to the Proof-of-Stake (PoS) system.
Contradictory Opinions
However, Markus Thielen, head of 10x Research, disagrees with this view, stating that for the start of a robust altcoin season, there would need to be a sustained decline in Bitcoin dominance to below 45%. Currently, Bitcoin dominance stands at 51%.
Reality or Imagination?
The recent price increase of the top cryptocurrency has sparked speculation in the crypto space. To provide a clear picture, Santiment reported on February 20 that most crypto projects have been profitable since October, but some lagging altcoins are warning of overbought signals.
Our Assessment
Although Ethereum’s price increase is sparking hopes of an altcoin rally, caution is advised. It is important to consider market conditions and Bitcoin dominance before jumping to conclusions. It remains to be seen whether Ethereum can continue its catch-up and whether the altcoin season is indeed imminent.
Sources: Ishika Kumari, Saman Waris, Henrik Andersson, Apollo Capital, Mikybull Crypto, Markus Thielen, 10x Research, Santiment.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
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| Price | $3,346.84 |
| 24h % | 7.42 % |
| 7d % | 4.89 % |
| 30d % | 27.67 % |
| 60d % | 29.62 % |
| 1y % | 66.37 % |
| Market Cap | $402,776,873,881.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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