One closely watched cryptocurrency analyst said one catalyst could send altcoin markets soaring for months.
An analyst known by the pseudonym Rekt Capital told his 100,000 YouTube subscribers that “the next few months will be life-changing” if Ethereum (ETH) breaks through key resistance levels.
“The exodus will enable massive inflows into smaller altcoins. And Ethereum hitting a new all-time high would be a major catalyst on the technical side for all other altcoins to rally quite substantially.”
According to traders, ETH would need to break $4,000 to trigger a major altcoin rally.
“It was the weekly close and successful retest (of the $4,000 level) that essentially enabled the move to new all-time highs. So, if we actually manage to close the week here and retest this ($4,000 level) as support, we would have $4,500. This could allow us to revisit previous all-time highs and perhaps break above $4,500, which could essentially lead to a rebound to new all-time highs and price discovery.”
As of this writing, Ethereum is trading at $3,595.
He also shared the OTHERS chart, which depicts the entire cryptocurrency market capitalization excluding the top 10 coins to gauge altcoin market strength, and suggests that altcoins could surge like they did in 2021.
“Now we are seeing weekly closes and retests here, where a successful retest could push us from $315 billion to $425 billion…
When we closed and retested this region every week (in 2021), we saw altcoin market caps expand to all-time highs. Essentially…
“If we can stay here for a few weeks, we could move to $425 billion.”
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