Ethereum breakout opens the door to altcoins

Table of Contents

    $ETH breakout
    A move long in coming
    Ethereum ecosystem gets a boost

Ethereum broke through the $2,000 resistance on Thursday. An $ETH rally now can open the door wide for a big altcoin move.

As bitcoin consolidated after breaking its own $36,000 resistance, $ETH finally made the move, that should it continue, is likely to steal dominance away from bitcoin and sprinkle it liberally among the altcoins.

$ETH breakout

Ethereum breakout opens the door to altcoins

Source: Trading View

$ETH broke through $2,000 on Thursday, and broke its long term ascending triangle, continuing on to reach as high as $2,130 on Friday. The price is currently consolidating around the $2,100 level and could either retest $2,000, consolidate sideways (to gather strength for the next leg up), or set off towards the top of its channel which could possibly be reached at a price of between $2,400 to $2,500. Of course, the one other scenario of breaking back down through $2,000 is also on the table, but upward momentum may prove otherwise.

Ethereum breakout opens the door to altcoins

Source: Trading View

A move long in coming

This move from ethereum has been long in coming, and has tested the patience of many. Crypto analyst Benjamin Cowan said on the Crypto Banter + YouTube channel only two weeks ago that he thought that ethereum dominance could drop to 9 or 10% (currently 18.5%), and that it was likely to lose a lot more value against its bitcoin pairing. 

Ethereum ecosystem gets a boost

It would appear that $ETH has other ideas, and should the current move upward continue, more value is likely to move into the ethereum ecosystem and alts in general. 

That particular move seems to already be beginning. Ethereum layer 2s Polygon (MATIC) and Arbitrum (ARB) caught a bid on Thursday, rising 8.4% and 10.4% respectively. 

However, there are possibly stronger narratives in the ethereum ecosystem, and these are running right now in the form of Curve (CRV) and Lido (LDO). DeFi protocol token $CRV has gained more than 10% on Friday so far, after suffering a horrible 22% plunge on Thursday which was bought straight back up; and ethereum staking token $LDO is up 25% since the beginning of Thursday. 

With the probable next point of focus after the Spot Bitcoin ETF being the Spot Ethereum ETF, these tokens are likely to continue to run hard. Altcoins in general can also enter the picture should ethereum be successful in bleeding dominance out of bitcoin.

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2023-11-10 14:01