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After a brief pump to $2,850 levels on Monday, the Ethereum price has once again come under selling pressure raising doubts over a possible altcoin season moving ahead. At press time, ETH price is trading at 1.71% down at $2,668 with daily trading volume up by 112% to $26.6 billion.
Why Is Altcoin Season At Risk?
While top analysts and investors have been predicting an altcoin season very soon, the recent market underperformance has made traders skeptical. Crypto analyst Ali Martinez has warned that the much-anticipated altseason could be at risk if Ethereum (ETH) fails to maintain the $2,600 support level.
According to Martinez, the most critical level for Ethereum lies at $2,425, where over 10.33 million wallets have accumulated a total of 62.43 million ETH. Should Ethereum dip below this key level, it could signal further price declines and potentially delay the altcoin rally.
Furthermore, market analysts believe that Monday’s surge in the Ethereum price was only due to the negative sentiment in the Solana meme coin sector and not because of ETH’s underlying strength.
Market Analysts Continue To Stay Bullish
Other market analysts believe that the altcoin season could be inevitable suggesting that the current technical setup is similar to just before the mega rally of 2021. On the X platform, Crypto Crew University noted that the altseason is very much here based on the technical setup on the charts.
The 100 Simple Moving Average (SMA) is about to cross above the 200 SMA, a rare occurrence that was last seen in 2020 just before altcoins saw a major surge. This pattern has sparked excitement among traders, signaling the potential for significant gains in the altcoin market, noted the analyst.
Optimism Around Ethereum Price Recovery Persists
Crypto analyst IncomeSharks has highlighted Ethereum price is in an ideal buy zone, suggesting that every day the asset remains within this range is a good opportunity for accumulation.
However, the analyst warned that once the first candle closes outside of this range, it will be too late to buy. This advice comes as Ethereum’s price remains within a critical zone for traders looking to enter before any potential upward movement.
Blockchain analytics platform Santiment reports that Ethereum’s supply continues to shift off exchanges and into cold wallets at an unprecedented rate, with only 6.38% of the total supply remaining on exchanges.
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
