Ethereum HODLers and Altcoin traders had an exciting week as the price reached a new ATH of $ 2547 the day before.
Altcoin is trading closer to ATH, despite a long price rally. Ethereum experienced significant developments during the week and there were exciting announcements such as Bitmain launching new ASIC miners. This week, CME ETH futures reached new highs and the Berlin update added to the bullish sentiment of traders in the exchanges.
Why is Ethereum’s price key to the altcoin rally?
Grayscale’s assets are the same as a month ago, but that didn’t stop institutions from buying ETH futures. There are other updates to Ethereum’s network that could directly affect the price. The Berlin update did not go as smoothly as expected. However, this did not affect Ethereum’s price rally.
Additionally, approval of ETH ETFs in Canada is critical to the ongoing altcoin rally. At the current price level, due to the latest updates and based on network metrics, Ethereum’s rally is expected to continue. Still, sharding will be an interesting feature among others in Ethereum’s updates.
While the price of Ethereum was around $ 1200, the concentration of large HODLs was increasing and was preparing to reach the next ATH. The price increase continued, despite several retreats. Ethereum’s transaction fees have increased over the past few hours, while its trading volume has declined by over 10%. The best Ethereum dApps, Aave and Sushiswap, are rising along with other low and medium value altcoins. This can be an ideal time for ETH traders to keep the price against selling pressure.
Ethereum has led the altcoin rally several times in the past, considering its relatively high correlation with Bitcoin and its increasing correlation with top crypto assets. Upgrades for Ethereum along the way can have a negative impact on the price unless the concentration of large HODLers increases. While most altcoins would rally higher and yield double-digit returns in the short term, ETH supported the price rally of most altcoins in the top 10. Ethereum’s price is the key to the altcoin rally this season.
