• Ethereum is breaking resistance and could lead to an altcoin season.
• The path to an altseason is gradual, starting with Bitcoin and Ethereum before moving into large-cap coins and eventually other altcoins.
• Traders should be careful not to get stuck in a long position if the market reverses back into its previous range.
Ethereum’s Rally Sparks Hope for Altcoin Season
The crypto market is currently seeing a massive short squeeze, leading well-known analyst Kyledoops to highlight the possibility of an altcoin season on Crypto Banter’s YouTube channel. As Ethereum breaks significant high timeframe key resistance and holds above $2,000, there may be an opportunity for money to rotate into other altcoins.
The Path To Altcoin Season: A Gradual Process
Kyle explains that the path to an altseason is a gradual process, starting with Bitcoin season then Ethereum season before transitioning into large-cap coins and eventually other altcoins. Although it may still be some time away, the current focus should be on Ethereum as its outperformance against Bitcoin could signal the beginning of the much-awaited altseason.
Phases Of An Altcoin Season
The phases of an altseason include large-cap coins going parabolic, mid-cap and low-cap coins pumping, followed by a mania phase where everyone is excited about the potential of crypto markets. However, Kyle cautions traders not to front run this process as it takes time for these transitionary phases to occur.
Risk Appetite Growing In Crypto Markets
As Ethereum continues its rally, crypto markets are showing signs of stronger risk appetite with market participants adopting a bullish stance on other coins as well. While this could potentially mark the beginning of an altcoin season, traders should remain cautious not to get stuck in long positions if the market deviates back into its previous range. Ether is currently trading at $2111.
With Ethereum breaking resistance levels and holding above $2000 there may be possibilities for money rotating into other cryptocurrencies leading up towards an eventual altcoin season. However Kyle cautions traders not front run this process as it takes time for these transitionsary phases to occur and warns them not get caught off guard in case there is broader deviation back into its previous range.