Altcoins
Ethereum (ETH) ETF Fails to Spark Altcoin Season, Market Rebounds Above $1 Trillion
The rebound in altcoin market cap to $1 trillion slightly changes the positive dynamics for the much-anticipated altcoin season in Q3 2024.
Bulls took control of today’s session, pushing the total cryptocurrency market cap to $2.39 trillion, up 4% in 24 hours at press time. Total trading volume stands at $82.2 billion, up 4.4% in 24 hours, at the time of writing.
The Ethereum ETF was supposed to be the flagship of the altcoin season, but the response so far suggests nothing in its favor.
Altcoin market cap is moving in a flag pattern, a steady rise above $1.56T could trigger the altcoin rally and lead to the altcoin season with favorable market conditions.
Ethereum ETF Potential Stabilizes
The Ethereum ETF got off to a strong start with $1 billion in trading volume on its first day with massive inflows and outflows. This activity attracted a lot of money to Ethereum but failed to circulate among other altcoins.
With the launch of Ethereum, market sentiments were poised to trigger the altcoin season, but the cooling volume of the ETH ETF and the distributed interest in the BTC ETF could not muster enough power.
While the price of Ethereum (ETH) is yet to react, experts predict that the price will see a massive surge between $4,000 and $7,000. At the time of writing, ETH is trading at $3,271 with a 24-hour growth of 3.08%.
Altcoin Season Indicator Kills All Hopes.
The required demand for the altcoin season has not been met by the cryptocurrency markets and this can be seen in the Altseason Season Index indicator which is below the threshold of 25.
A push above 75 will mark the start of altcoin season.
Source Blockchain Center
Furthermore, analyzing the performance of the top 50 assets in 90 days shows that only 11 of them have outperformed BTC.
To kick off the official altcoin season, at least 75% of assets must outperform Bitcoin.
An increase in inflows and the return of investors in September and October could potentially trigger the altcoin season we have all been waiting for.