With the stagnation of the crypto markets, all eyes were on Bitcoin – not Ethereum or Litecoin. After all, the next big step in the leading cryptocurrency is likely to determine the direction the entire industry will take in the coming months.
In that sense, yes, Bitcoin’s price action is the most important in digital asset trading. Now, an analyst still notes that traders should not ignore ETH Zurich, as the popular Altcoin shows signs of an impending uptick.
ETH prepares for the rally against Bitcoin
The Amsterdam stock market trader and popular crypto analyst Crypto Michaël estimates that Ethereum may soon see a positive price development compared to BTC. According to him, ETH approaches a two-year downtrend line that has pushed down the upper outbursts of ETH at least three times.
According to Michaël, Ethereum should soon test the above downtrend given the recent bullish divergence for ETH / BTC. An outbreak, according to the analyst, “would mean a significant step for the market.”
Other analysts assume that even old coins will break out. Bitcoin Jack, a former cryptoanalyst from the Bravado research group, has found that Altcoins are starting to show much needed strength. According to him, Altcoin market capitalization could see rapid growth for the BTC pair should some technical analysis scenarios fully materialize.
He also notes that the aforementioned pair (ALTS / BTC) is in a compression phase and is about to break out of a declining segment of the one-day Ichimoku Cloud, which the analyst believes is a “signal of strength”.
The strength in the market capitalization of Altcoins over Bitcoin should lead to a price increase for large capped coins – such as Ethereum, XRP, and the like.
Ethereum’s strong fundamentals
The fundamentals of the Blockchain support the trend in ETH pricing. In three days, Ethereum will implement the so-called “Istanbul” Hard Fork. The Hard Fork will implement six “Ethereum Improvement Proposals” (EIPs).
The upgrades being implemented include EIP-152, which gives Ethereum some compatibility with the ZCash chain; EIP-1108, which makes zk-SNARKs cheaper on the network and enables applications that are more private and scalable than their pre-upgrade counterparts; and EIP-2200, which alters the cost of storing data in the blockkain virtual machine and enables certain intelligent contract functions.
And most recently, Ernst & Young, a major accounting and advisory firm, has updated its Ethereum Nightfall solution, which enables developers to conduct private on-chain transactions.