Popular trader Peter Brandt believes that Ether (ETH) saw a significant increase in its ETH-BTC pair on July 9. According to the experienced dealer The increase could be a sign that a new altcoins season could take place in the short term.
“Significant increase in ETH BTC with a target of 0.03276 BTC. Most altcoins should win in bitcoin in the near future. “
Daily ETH BTC chart. Source: Peter Brandt
The strong performance of alternative cryptocurrencies in recent weeks has coincided with an increase in the ether and the expectation that upcoming network updates will address the escalation problems that plague the network during the main transaction phases.
Cardano, Kyber Network, Compound and Chainlink emerge when ether rises
In the past week, Cardano (ADA), Kyber Network (KNC), Compound (COMP) and Chainlink (LINK) Four major altcoins saw significant gains against the US dollar, Bitcoin and Ether.
The four cryptocurrencies had major network updates, product launches, or high profile announcements that increased their values.
For example, Cardano has transferred a node that contains all changes from its Shelley update to the main network. On July 30, the long-awaited Shelley update will be completed by a hard fork in the Cardano blockchain. This enables Cardano to compete with Ethereum as a proof-of-stake (PoS) network.
The Kyber network was also mobilized after the launch of Katalyst. In a nutshell, With Katalyst, users can participate in KNC, participate in KyberDAO and benefit from various incentives. It is theoretically similar to the stakeout mechanism of Ethereum 2.0.
The crypto market research company Santiment, said::
“The top 100 KNC non-business addresses have increased since Katalyst, and it appears that the top 10 general owners increased their share of the total offering from 48.6% 48 hours ago to 52.2% (more than half) of the total offering at the time of closing the market today. “
Kyber Network shows a very optimistic trend in the chain. Source: Santiment
The positive mood regarding alternative cryptocurrencies, combined with the skyrocketing demand for tokens related to decentralized funding, seems to have increased investor confidence.
According to Binance futures data, Investors continue to hold a long majority position in many altcoin pairs. In fact, more than 50% of the platform’s dealers have long contracts with LINK, ADA, KNC and COMP.
Altcoins could benefit from the bullish structure of the ether market
Some traders They assume that Ether’s rise will continue in the third quarter of 2020 due to a favorable market structure;; altcoin is currently testing a significant multi-year resistance level of $ 250. The coin has briefly exceeded this level three times in the past two weeks.
The last two times, the price of ETH cleanly exceeded $ 250 what resulted in a rise above $ 280 and $ 360.
Traders appear to be optimistic about Ether’s short-term trendBecause Altcoin has weakened an important level of resistance with multiple tests. This is because the likelihood that a support or resistance level will be tested multiple times in a short period of time increases if it is tested multiple times.
A comparison of the ETH USD fractals. Source: Byzantine general, TradingView.com
The growing number of altcoins that allow staking due to the rapid growth of the DeFi sector and its use Expecting an ether surge could support a strong uptrend in the altcoin market.
The ether trading volume has also remained relatively high in the past ten daysThis indicates that buyers are willing to raise the price in an important resistance zone despite strong selling pressure.