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The limited range Bitcoin price opens the door for altcoins to move higher

The limited range Bitcoin price opens the door for altcoins
The limited range Bitcoin price opens the door for altcoins

Ether (ETH) took over when a new month begins and the second largest digital currency by market capitalization recovered to a new all-time high of $ 3,338. This has many analysts shouting that a new ‘altcoins season’ has begun. Meanwhile, the price of Bitcoin (BTC) continues to find resistance around the $ 56,000 to $ 58,000 level.

Cointelegraph Markets and TradingView data show that since it fell to a low of $ 2,160 on April 25, the price of Ether has risen 54% to a new record of $ 3,324 on May 3, as the peak of 12% on Monday raised the top alternative currency above the level of $ 3,300. for the first time in history.

4-hour ETH / USDT chart. Source: TradingView

While most digital currency traders are celebrating the breakdown in prices of Ether, which has helped elevate project co-founder Vitalik Buterin to the club of digital currency billionaires, bearish traders are on their way to big losses as almost all of the 76,000 put option contracts set to expire on April 7 will have no value if Ether’s price manages to stay above $ 3,100.

And it’s not just Ether that has worked well lately. In the last 2 months, the altcoins market as a whole has seen its value increase by 119% and changed the peak of 2017 to a new level of support.

Ether HODL rates are rising

According to Glassnode, a chain analysis company, the amount of Ether that remains long-term has been on the rise since the end of 2020 and this could be a factor contributing to boosting the multi-month rebound.

Ones Ethereum HODL. Source: Glassnode

The graph above shows the “Ethereum HODL waves” indicates that “coins appear to have a maturity of 1 week to more than 6 months from the end of 2020 (blue arrows)”, with the proportion of coins of 1 month to 6 months ». gradually increasing in thickness, suggesting that HODLing currencies accumulated in the early bullish market remain a favored strategy.

Glassnode also noted that a large volume of Ether was removed from the exchange portfolios in 2021, with 10 cases of withdrawals of more than 200k Ether per day in just 4 months as institutional demand and use of decentralized finance (DEFI).

Supply of Ethereum in smart contracts versus balance in exchanges. Source: Glassnode

As seen in the graph above, the amount of Ether retained in exchanges has been declining since September 2020, which coincided with a marked increase in the amount of Ether retained in smart decentralized finance contracts.

Currently, the amount of Ether blocked in smart contracts is exceeding the amount held in centralized exchange reserves.

Altcoins outperform Bitcoin for now

With Bitcoin still struggling to secure a daily close above $ 58,000, altcoins continue to advocate for an emerging alternative season.

Daily performance of digital currency market. Source: Coin360

Waves (WAVES) was the star of the day with its symbolic price rising 41% to an all-time high of $ 36.41. Ethereum Classic (ETC) also recovered 15% to a new all-time high of $ 50.90.

After rising 17.84% to $ 5,777 in the last 24 hours, Maker (MKR) is now the best ranked decentralized finance protocol (DEFI) with a total locked value of $ 10.92 trillion.

The overall capitalization of the digital currency market is now $ 2.29 trillion and the Bitcoin dominance rate is 46.6%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves a risk, you have to do your own research when making a decision.

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