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Now, after Bitcoin has risen, investors are eyeing the sky-high returns of Altcoins, including notable names like Ethereum, XRP, and Chainlink. In it, Ethereum price closely watched Bitcoin at the end of the year, prompting it to see some key consolidations. The trend of the Altcoin market over the medium term will largely depend on ETH’s continued response to the $ 600 region.
ETH/USD 4-hour chart | Source: TradingView
Market trends in the coming days and weeks will depend largely on where Bitcoin and Ethereum price are
Bitcoin has risen 150% in the past 12 months but has been left behind by the price surge that several other cryptocurrencies have seen, many of which have soared amid a wave of interest in decentralized finance (DeFi ). Ethereum, the world’s second-largest cryptocurrency by value by which many DeFi projects are built, has increased by 300% over the past 12 months.
At the time of writing, Ethereum is trading slightly down at its current price of $ 594. This phase of consolidation takes place as Bitcoin struggles to gain a foothold above $ 19,000. It heavily influenced ETH’s price action towards the end of the year, meaning how it responds to this level could affect Ethereum’s response to $ 600.
According to crypto trader Cactus, Ethereum’s bi-weekly chart is showing some signs of immense technical strength. Hence, he believes a rally to $ 1,200 is possible in the coming months, with this marking a 100% increase from its current price level.
Bitcoin will undoubtedly influence Ethereum’s trend in the medium term, making it imperative that the cryptocurrency remains above $ 19,0000.
The Altcoin market also has no shortage of prominent names
Meanwhile, XRP is up 165% with most of the increase just in the last month. At press time, XRP was also dragged into the market’s decline with a slight 1% drop over the past 24 hours, trading around $ 0.61. Chainlink is also a blockchain and cryptocurrency network used by DeFi and broader projects to link data sources, APIs, and payment systems. LINK price has increased by a staggering 500% until 2020.
Among the smaller tokens, Cardano and Stellar Lumen also gained 300% and 200% respectively. NEM, a cryptocurrency that powers the New Economy Movement blockchain, has increased by 550%, while Theta, the cryptocurrency token of a blockchain-enabled network built for video playback, has increased by nearly 800%.
These large rallies are limited by the profits recorded by a handful of smaller cryptocurrencies. Yearn.finance, used by investors looking for returns like interest to move money around the DeFi ecosystem, rose by a staggering 2,600% in the last year alone.
Ethereum’s price has been raised thanks to confirmation that the ethereum network this month will begin the long-awaited upgrade that people in the crypto community hope to help the ETH network scale.
Kosala Hemachandra, the chief executive of MyEtherWallet, stated:
“The recent rally in ethereum is associated with multiple factors. Ethereum benefiting from the overall crypto rally and the beginning of the first phase of Ethereum 2.0. These price movements aren’t necessarily due to a decrease in supply, but because of the fame and excitement that comes around the innovation in blockchain technology. This is just the initial phase (phase 0) of the ethereum 2.0 roll-out, building the foundation for ethereum 2.0’s success. I expect that ethereum will continue to gain prominence in mainstream circles as we hit future ethereum 2.0 milestones.”
Meanwhile, investors Bitcoin and other cryptocurrencies are confident that there has been a change in sentiment this year.