Ethereum
ETH, ADA set to become ‘first movers’ as altcoin season looms – Here’s how
Posted:
| Last updated: February 22nd, 2024
Journalist
- If Bitcoin dominance falls, ETH and ADA might lead the altcoin rally.
- The broader market was bullish on both cryptocurrencies.
Despite the price hike experienced lately, crypto analyst Dan Gambardello said Ethereum [ETH] and Cardano [ADA] have not made big moves to confirm the much-anticipated altcoin season. Gambardello mentioned this in a YouTube session he had with his subscribers on the 19th of February.
According to him, Bitcoin’s [BTC] dominance was still at a high level. Therefore, the amazing performances of many altcoins might only be a tip of what’s to come when the altcoin season comes in full force.
Everything depends on these two
For those unfamiliar with the market terrain, altcoin season is crypto terminology that references a phase in a market boom cycle when alternative cryptocurrencies are outperforming Bitcoin. Historical data show that the boom begins with capital first flowing into ETH.
Last bull cycle, ETH led the rally but it was also accompanied by ADA’s breakout. This time, it might not be any different. But a look at Bitcoin’s dominance showed that it had not yet opened the door to ETH. In fact, the same had risen to 49.4%, despite slipping below 49% earlier.
However, being below 50% could offer ADA and ETH the opportunity to dominate the market. However, that alone might not be enough to bring about an altcoin season. As such, we evaluated the market sentiment around these cryptocurrencies.
Market participants have their eyes on ADA and ETH
According to the result we got from Santiment, ADA’s Weighted Sentiment was 0.918.
ETH, on the other hand, also had a positive Weighted Sentiment. At press time, the metric was 0.918. The metric shows the perception the average market participants have about a project.
Therefore, these readings suggest that most traders were bullish on the Ethereum and Cardano ecosystems. Should this sentiment remain as it is, buying pressure might appear for the cryptocurrencies.
If this is the case, ADA’s price might head toward $1. Also, ETH’s price prediction above $3,000 might come to pass.
Source: Santiment
In terms of the volume, on-chain data showed that ADA increased to $685.07 million. The increase in volume implies that interest in ADA has been increasing. Furthermore, that interest had translated to a jump in buying and selling. ETH’s volume also followed a similar trend.
Realistic or not, here’s ADA’s market cap in ETH terms
At press time, Ethereum’s volume was $15.62 billion. When connected with the price, the volume might push for an upside. If ADA’s volume continues to increase alongside the price, it can beat the overhead resistance.
Source: Santiment
In addition, ETH’s climb to $3,500 might happen if interest in the cryptocurrency sustains the hike. Should ADA hit $0.90 and ETH reach $3,500 other altcoin prices might climb.
