Altcoins Rally as Ethereum Nears $2,000

Today, the cryptocurrency market as a whole is experiencing a new phase of euphoria. Altcoins have joined the Bitcoin celebration, causing the entire cryptocurrency market to increase by 7.5% and adding over $150 billion to investor holdings.

As the Bitcoin price reached a new high of $23,000 for 2023, leading altcoins such as Ethereum (ETH) gained 8%, surpassing the $1,8000 mark and anticipating the next move to $2,000. Ethereum’s year-to-date gains have increased to more than 50 percent with its most recent price movement.

The US SEC has accepted Grayscale’s application to convert its Ethereum Trust (ETHE) into a spot Ethereum ETF, which is an intriguing development.

According to the technical chart, the Ethereum price has broken out above $1,745 after forming a double bottom. Other technical indicators also suggest that the rally will continue in the future.

If traders maintain their open purchase orders, a potential 12.25% breakout to $1,958 may occur. Once the breakout occurs, there will likely be an increase in trading volume as traders seek new opportunities with Ether trading above the neckline resistance.

The current level of 75 for the Relative Strength Index (RSI) indicates that the price of Ethereum is poised to maintain its uptrend.

However, investors must exercise caution, as overbought conditions may entice traders to take profits or safeguard their holdings.

According to the money flow index (MFI), the bulls are in the lead. This metric monitors the inflow and outflow of capital into and out of the market, with a consistent increase indicating buyer dominance in an uptrend.

For Ethereum supporters, surpassing the $2,000 threshold could be a significant turning point. It may serve as the catalyst that ignites the next bull run.

Dogecoin and Cardano, two of the top ten cryptocurrencies, have followed a similar trajectory to Ethereum, acquiring 8% each. Both BNB Coin and Ripple XRP have increased by 4%.

In contrast, Solana, which has been the top performer, has remained relatively unchanged and appears to be entering a consolidation phase after posting 30% weekly gains.