Analysts claim altcoins will remain bearish as Ethereum battles for the rally

  • Altcoins have increased significantly in the last few days and weeks, with the DeFi sector in particular showing immense momentum
  • This comes after several months of losses that Altcoins have faced, with those based in the DeFi sector being particularly hard hit
  • However, Ethereum’s recent explosive upward rally helped put an end to this trend
  • However, the cryptocurrency saw a rebound last night and is once again surpassed by Bitcoin
  • A trader now notes that the aggregate market capitalization of altcoins compared to that of bitcoin paints a bleak picture for the smaller tokens

Ethereum has been running the altcoins firmly for the past few days and weeks, with smaller tokens closely following in its footsteps.

While last week has been incredibly bullish on altcoins, Bitcoin’s continued push over $ 16,000 at one point is against sucking the oxygen out of space and causing many to see slight setbacks.

ETH is also performing worse than BTC, trading below its daily high, while BTC rises above $ 16,000.

By the time Ethereum can hit the momentum of Bitcoin and surpass $ 500, there is a good chance that the aggregate crypto market will continue to face slight weakness.

Ethereum is fighting for a rally alongside Bitcoin; Strike against altcoins

Most of the major altcoins are trading down from their daily highs, which is due to the underperformance of Bitcoin’s Ethereum.

As has been seen several times over the past few weeks, altcoins tend to drift down when Bitcoin recovers and gain momentum once it enters a consolidation phase.

Unless Ethereum can cross the $ 500 mark in the short term, there is a high probability that this trend will continue.

Altcoins look “terrible” against bitcoin, Claims Analyst

When comparing the market capitalization of altcoins with that of bitcoin, an analyst found that there is a high probability that these tokens will face persistent weakness in the near future.

He added that Ethereum’s underperformance would contribute to this weakness.

“We had a good couple of days on ALTS and ETH, but the ALTS / BTC chart still looks terrible. Just look for quick hikes in and out before repeating the “yearbook”, ”he said.

Image courtesy of Mac. Chart over TradingView.

How the Ethereum trends are going to play next will likely play a massive role in figuring out where altcoins will head in the near future.

Any persistent weakness in ETH could deal a fatal blow to this token.

Featured image from Unsplash. TradingView charts.

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