• Ethereum has broken a high timeframe key resistance level, sparking hope for an altcoin season.
• The path to altseason is a gradual process, starting with Bitcoin and Ethereum season before moving into other altcoins.
• Traders should be careful not to get trapped in a long position if the market experiences a deviation back into its previous range.
Altcoins To Explode – How High Will The Crypto Rally Go in This Bull Market?
Ethereum’s Rally Sparks Hope for Altcoin Season
The recent video analysis by well-known crypto analyst Kyledoops on Crypto Banter’s YouTube channel highlighted the possibility of an altcoin season as the market sees a massive short squeeze. Ethereum has broken significant high timeframe key resistance, and as long as it can hold above $2000, there may be an opportunity for money rotation into altcoins. According to Kyle, the phases of an altseason include large-cap coins going parabolic, mid-cap and low-cap coins pumping and a mania phase where everyone is excited about the market.
The Path to Altcoin Season: A Gradual Process
The path to altseason is a gradual process starting with Bitcoin season and Ethereum season before transitioning into other large-cap coins and eventually other altcoins. Although traders may be looking forward to an upcoming altseason, they should not front run the process as these transitionary phases take time. As Ethereum continues rallying investors are showing signs of stronger risk appetite by adopting bullish stances on other coins.
Risk Management When Trading Altcoins
Traders should be careful when trading in this bull market so that they do not get trapped in a long position if the market experiences any deviation back into its previous range. Traders need to exercise caution so that they do not over expose themselves during periods of extreme volatility or uncertainty in the market conditions.
Ether is currently trading at $2100 which could signal the beginning of much awaited altseson if it can hold above this price point for some time now. The current focus should remain on Ethereum performance against Bitcoin as this could indicate how soon we will see an altseson in full swing.