\n
<\/p>\n
The cries are loudening for a potential \u201caltseason\u201d as Ether (ETH) approaches the $3,000 level; however, analysts have cautioned it may not come so soon.<\/p>\n
On Feb. 19, Ether prices hit an intraday and 22-month high of $2,980. The last time the asset traded above $3,000 was in April 2022. <\/p>\n
The price movement has seemingly led many observers to believe an \u201cETH bull market\u201d is near, while others have declared that \u201caltseason\u201d has already returned to crypto.<\/p>\n
\u201cI think there are several powerful catalysts coming up that might spark an altcoin rally,\u201d agreed Apollo Capital chief investment officer Henrik Andersson in comments to Cointelegraph.<\/p>\n
These were primarily Ethereum fundamentals such as the Dencun upgrade and mainnet launches for scaling solution Blast and restaking platform EigenLayer, he said before adding: <\/p>\n
\u201cEthereum has been underperforming BTC over the past year, it feels like it is due for a catch-up in particular due to the supply sinks and it being deflationary since the move to PoS.\u201d<\/p><\/blockquote>\n
\u201cWe\u2019re entering an ETH bull market [which is] beta for altcoins,” said Yuga Cohler, a senior engineering manager at Coinbase on X. <\/p>\n
Meanwhile, economist and trader \u2018Mikybull Crypto\u2019 told their 60,000 X followers that March is always bullish for ETH. Hence $3,000 is on the table, before adding, \u201cThis cycle of altseason is going to be huge!\u201d<\/p>\n
Technical analyst and trader \u2018Titan of Crypto\u2019 shared a chart of the total market capitalization of altcoins without BTC and ETH revealing a breakout. <\/p>\n
\n#Altcoins SURGING !<\/p>\n
The following chart shows the Crypto Total Market Cap Excluding #BTC and #ETH. <\/p>\n
38.2% Fibonacci retracement level was the ceiling.Now it's game on. pic.twitter.com\/c41x61ATvk<\/p>\n
\u2014 Titan of Crypto (@Washigorira) February 18, 2024<\/p><\/blockquote>\n
Not so fast <\/h2>\n
Markus Thielen, head of 10x Research however says there's a lack of evidence suggesting an altcoin season is coming.\u00a0<\/p>\n
\u201cWhile speculation swirls about the possibility of an altcoin season, the current landscape lacks substantial evidence, with Bitcoin's enduring dominance standing at 51%.\u201d <\/p><\/blockquote>\n
He explained that to kickstart a viable altcoin season, \u201csustained reductions in Bitcoin dominance below 45% are necessary.\u201d<\/p>\n
\u201cUnlike the thematic surges observed during the ICO and DeFi summer bull markets, the present upswing lacks a discernible narrative, aside from the influx of Bitcoin ETF investments.\u201d<\/p><\/blockquote>\n
The analyst also pointed out that recent altcoin rallies have quickly fizzled out, indicating a higher risk-adjusted potential favoring Bitcoin investments.<\/p>\n
Moreover, Ethereum momentum also seems driven by potential ETF approvals in May rather than increased on-chain activity within dApps, he said before concluding: <\/p>\n
\u201cWe anticipate this bull market persisting until 2025, during which altcoins may attempt various rallies.\u201d<\/p><\/blockquote>\n
Related: <\/strong>Is it altseason? Altcoin 30-day performance and total market cap flash bullish<\/strong><\/p>\n
On Feb. 20, blockchain analytics firm Santiment reported that since crypto markets began moving in October, the \u201cvast majority\u201d of crypto projects have generated profits for the average wallet on a mid to long-term timescale aside from a few lagging altcoins.<\/p>\n
However, it cautioned that its model is indicating overbought signals, citing the market value to realized value (MVRV) metric which is \u201crevealing there is a higher risk than average in buying or opening new positions while markets are in the midst of a 4+ month surge.\u201d<\/p>\n
MVRV is the ratio of the total market cap divided by the realized cap. It is used for spotting local market tops and bottoms. <\/p>\n
\nBased on average trading returns, many assets have seen understandably high profits since markets began booming all the way back in mid-October, 2023. Outside of a few lagging #altcoins, the vast majority of #crypto projects have generated profits for the average <\/p>\n
(Cont) pic.twitter.com\/ziKhzmcz1v<\/p>\n
\u2014 Santiment (@santimentfeed) February 20, 2024<\/p><\/blockquote>\n
Magazine: <\/strong>\u2018Crypto is inevitable\u2019 so we went \u2018all in\u2019 \u2014 Meet Vance Spencer, permabull<\/strong><\/p>\n<\/div>\n