Ethereum, as the leader of Altcoins, has finally seen the long-awaited rise after a long period of silence. The price of Ethereum broke through $3,600 on November 27, and the current price is $3,583, which is in a critical resistance range. Nevertheless, its upward trend has not ended, and it may continue to test the upper limit of the resistance area in the future. As a holder, even facing many doubts, I still hold it firmly. Against the backdrop of Bitcoin approaching $100,000, Ethereum is still a relatively stable investment choice.
Ethereum price is expected to rise by 10% in December
The rise in the price of Ethereum today is further driven by strong technical support and the breakthrough of the bullish chart pattern. This cryptocurrency has rebounded from the 50-period exponential moving average (EMA) on the four-hour chart, a key level that has been supported in its recent upward trend.
In addition, Ethereum has entered the breakout stage of its current cup and handle formation, which is a typical bullish continuation pattern. This formation was formed within a few weeks, and the breakout occurred when the price soared above the $3,440 neckline level. The cup and handle breakout usually projects a measured move equal to the cup depth, making Ethereum's upside target close to $3,940. In other words, the price of Ethereum may rise by more than 10% in December.
In the past few days, Ethereum has not fallen with BTC, but has started to rise sharply, once approaching $3,700, which has allowed the Ethereum ecosystem to regain the market's attention, and many popular tokens have performed brilliantly, including:
- ENS: The price soared by more than 53% in a single day, becoming the best performer among the top 300 tokens by market capitalization
- Puffer: The price surged by 60% in a single day
- EIGEN: The price rose by 25% in a single day, breaking through $4.1, just 10% away from the historical high.
- INST, ENA, etc.
With the continued strong performance of Ethereum, the performance of related ecosystem tokens is worth watching, and the market may officially usher in the Altcoin season! This makes one think of the market conditions in 2020-2021. At that time, Bitcoin launched a significant main upward wave, Ethereum rose, and then the roles were reversed, with Ethereum surging sharply and various tracks also experiencing violent main upward waves. Although history may not repeat itself exactly, it has great reference value.
Although there are fundamental differences between the current situation and 2021, such as the Federal Reserve not providing liquidity and limited liquidity, if BTC maintains FOMO sentiment and ETH continues to rise, which Altcoins and projects are worth watching?
During the bull market correction, we should focus on two types of Altcoins:
(1) Altcoins that have been strong in the past and their correction situation
Some Altcoins that have had significant gains in the past may have entered an overbought state. After experiencing a certain degree of correction, it is necessary to pay attention to whether they have already formed a bottom pattern and are accumulating strength to prepare for the second wave of rise. Those projects that can successfully break out of the bottom are likely to see another explosive growth in the future.
(2) Whether the newly emerging Altcoins can maintain their strength
Some Altcoins can still maintain a strong upward momentum even in the case of a market correction and an unfavorable market environment. These projects usually have strong financial support or have gained high recognition from the market, with sufficient confidence to support them, so they are potential stocks worth paying attention to.
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