Ethereum reached a new all-time high yesterday at $1,440. This is the first time the second-largest cryptocurrency is reaching that price since the all-time high following the 2017 bull run. The price is expected to go even higher as analysts say the coin is grossly undervalued. As promising as that is, it may be nothing compared to what is to come for smaller cap altcoins.
A cryptocurrency trader and analyst, Rekt Capital says the smaller-cap altcoins will rally even stronger than anything Ethereum has ever done. He said the rally will be great in order to compensate for the long time that they have been lagging behind without a pump. In a tweet, the analyst wrote:
“$ETH leads the Altcoin Market while other Altcoins lag
But just like ETH is having its moment now (i.e new ATH yesterday)…
Other Altcoins will also have their time in the sun
They will rally strongly to compensate for long-standing lag
With time – it will happen”
Another Alt Season Coming
Bitcoin has experienced significant short term prices since 2017. Ethereum has also gained significantly mainly because its price follows that of Bitcoin. For most altcoins, there has been nothing remotely close to 2017. Analysts however believe that the status quo is about to change with the recent range-bound movement of Bitcoin.
Bitcoin had risen to a new all-time high of over $41,000. After a retrace to just over $31,000, the top cryptocurrency has hardly been able to reach $40,000 again. The price is currently tied between $30,000 and $40,000 and it could be heralding the start of another alt season. One analyst that thinks altcoins could be “taking the limelight” is market analyst Michael Van De Poppe.
“Most likely going to occur at this point is the following.
Relief rallies all across the #altcoin markets. FOMO on altcoins.
Bitcoin corrects one more time -> altcoins making HL and retesting.
Bitcoin grinds up and real altcoins fiesta in the summer,” he wrote on Twitter
DeFi will Not Be Left Out
The year 2020 was a big one for DeFi tokens which attracted investors to the Ethereum network. The year 2021 may hold a lot of promise for the DeFi ecosystem as well. A Bitcoin bull and Co-Founder of Real Vision Raol Pal said in his 2021 crypto forecast that DeFi tokens will feature in the next altcoin rally.
Some DeFi tokens such as Chainlink (LINK) have been leading since 2020. After rising almost 20x, LINK has reached a new high of almost $22 in 2021 and still holds potentials for performance in the near future. Although Bitcoin is in consolidation now and altcoins are expected to pump as a confirmation of the new alt season, there is no such sign as all the top altcoins are also in the red.
