ETH is gaining on Bitcoin and the U.S. dollar, and other altcoins can also take share from the market leader.
Ether (ETH) has cleared a crucial hurdle in direct trading with Bitcoin (BTC), which could be the first indication that all „alternative cryptocurrencies“, the so-called „altcoins“, will soon be heading significantly upwards.
A good deal?
As data from Cointelegraph Markets, Coin360 and TradingView shows, the ETH/BTC currency pair climbed above the 0.026 BTC mark today, January 3.
After going sideways for most of December, the second-ranked cryptocurrency has already picked up in the first couple of days of the new year, with this one potentially being the starting gun for an outright high.
This optimism is well-founded, because as Cointelegraph Markets analyst Michaël van de Poppe noted last week, the 0.026 BTC level is a key resistance level, which is why the jump above it underscores „strength and staying power“ of the current uptrend.
„Now it’s the turn of #Ethereum, #Polkadot, #Cardano, #Chainlink and some other altcoins with new record highs,“ as the full-time trader on the Amsterdam Stock Exchange therefore opines.
„I am convinced that capital will flow from Bitcoin into the altcoins, and that Ether has formed a floor against Bitcoin,“ as van de Poppe explains. „The altcoins will get their high this quarter, which is why Bitcoin’s market dominance will get smaller again,“ the expert continues. So with that, he predicts that the altcoins will gain more against the market leader. Even if Bitcoin continues to rise, the gain of many other cryptocurrencies will be even greater.
However, van de Poppe would not be averse to a downturn of the market leader:
„I would also welcome a downturn of Bitcoin.“
At press time, the ETH/USD currency pair was also heading for an important mark. A 21% daily gain brings the Ether price ever closer to the $1,000 mark. In January 2018, the Ethereum cryptocurrency was last able to push into the four-digit range.
„ETH is clearly the best-performing cryptocurrency of 2020, up 450%, with the price still well below its previous record high,“ as Cameron Winklevoss, co-founder of crypto exchange Gemini, noted to that effect on Twitter. And further:
„For Ether, we’re at about where #Bitcoin was at $15,000 today. That’s a deal I’d take in a heartbeat.“
Has the altseason begun?
The so-called „altseason,“ or the flight to the top of altcoins, seems closer than ever again, as the market capitalizations of the top 10 altcoins are once again increasing relative to Bitcoin.
Litecoin (LTC), for example, has gained 18% over the market-leading cryptocurrency, while Bitcoin Cash (BCH) and Cardano (ADA) have each gained 13.3% and 9.7%, respectively.
Even XRP, which has been nosediving following the indictment of issuer Ripple, managed to make up 3.5% ground on BTC today. Bitcoin’s market dominance nevertheless remains above 70%.As Cointelegraph had reported, long-term investments in the altcoins could pay off either way, as Ether mining alone can generate up to $120,000 per year.