• Ethereum’s recent rally has sparked hope for an altcoin season as the market sees a massive short squeeze.
• The path to altseason is a gradual process, starting with Bitcoin season and Ethereum season before moving into large-cap coins and eventually other altcoins.
• Traders should be careful not to get trapped in a long position if the market experiences a broader deviation back into its previous range.
Ethereum Rally Sparks Hope for Altcoin Season
The crypto market is showing signs of increased risk appetite, with Ethereum’s recent rally sparking hopes of an altcoin season as the market experiences a massive short squeeze. Well-known crypto analyst Kyledoops was on Crypto Banter’s YouTube channel to highlight this possibility.
Transitionary Phases to Altseason
According to Kyledoops, the path to altseason is a gradual process that starts with Bitcoin season followed by Ethereum season before transitioning into large-cap coins and eventually other altcoins. He also explained that although an altseason may still be some time away, traders should focus on Ethereum at present as its outperformance against Bitcoin could signal the beginning of an altseason. The phases of an altseason include large-cap coins going parabolic, mid-cap and low-cap coins pumping, and finally mania phase where everyone is excited about the unstoppable market.
Risk Appetite Growing in Crypto Market
As Ethereum continues rallying, more participants are adopting bullish stances on other coins which indicates growing risk appetite in the crypto market. However, Kyledoops cautioned traders against front running the process or getting trapped in long positions if there is a deviation back into previous ranges. Ether is currently trading at $2111 USDT.
Disbelief Phase Before Altcoin Season
Kyledoops noted that the current market sentiment appears to be disbelief as many people remain unconvinced of potential upside in cryptocurrencies yet they are caught off guard by sudden movements in prices due to capitulation seen across different projects over time. This phase will precede any potential transitionary phases leading up to an eventual full blown “altcoin season” once all conditions have been met for such event.
Conclusion
At present it looks like we are still some way off from seeing an “altcoin season” but traders should keep their eyes peeled for any changes or developments that could move us closer towards such event – particularly when it comes to tracking performance relative between Bitcoin & Ethereum as well being aware of any signs of capitulation or deviations from previous price ranges which could indicate larger movement ahead for entire crypto marketspace