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Expectations Before ETH and Altcoin Season
Analysts are giving mixed signals regarding the general trend of cryptocurrency markets. Looking back at past periods of geopolitical tension, it is seen that cryptocurrencies reacted differently. For example, at the beginning of 2020 during the US-Iran tension, there was no significant drop in the crypto market; however, during the Russia-Ukraine war in 2022, the market experienced a short-term decline but recovered within a few weeks.
Especially on the front of Ethereum (ETH), the largest altcoin in the cryptocurrency market, positive developments are noteworthy. The US Securities and Exchange Commission's (SEC) clearer regulatory statements regarding the DeFi space and approval of staking-enabled Ethereum ETFs are increasing investors' appetite. The fact that there has been no net outflow from Ethereum spot ETPs since mid-May is also considered a strong indicator for the market. This data is recorded as the longest uninterrupted positive inflow series in Ethereum's history.
On the technical side, positive formations have started to emerge for the popular cryptocurrency ETH. Experts state that if the “cup-and-handle” formation on the chart is completed, the price could break the $2,750 level and rise to the $4,100 band after a short-term increase of between 40% and 50%.
Additionally, the market dominance rate of Bitcoin, the leader of the cryptocurrency market, is currently fluctuating between 62% and 64%. This rate creates an important signal for altcoins. If the dominance rate breaks downward from these levels, a fund rotation towards altcoins is expected across the crypto market. The RSI and other technical indicators also show that the market has not yet switched to “extreme fear” mode.
