Altcoin season is now official. The highest rank of the group hit a new all-time high today – similar to Bitcoin at the end of last year. At the same time, the open interest in Ethereum futures contracts has never been higher, suggesting that the momentum, volatility and potential upside has only just begun.
Here’s a closer look at the latest record-breaking cryptocurrency rally versus its most recent high and what investors can expect from here, according to top industry analysts.
Bitcoin interest purchases flow into altcoins and send Ethereum to track prices
Bitcoin, which is exploding well beyond its previous record and causing a widespread FOMO, has transitioned into altcoins, which have grown even larger comparatively since then.
Related reading | Capital manager: Ethereum will double in two weeks once ATH is broken
Last year, Ethereum outperformed Bitcoin on an ROI basis, but didn’t break its all-time high so far, while the top cryptocurrency did. But in the past 24 hours, it was time for the top altcoin to shine.
A new all-time high price record was set, beating the January 2018 peak | Source: ETHUSD on TradingView.com
The second largest cryptocurrency by market capitalization has now broken its previous January 2018 record. After breaking the record, analysts expect ETH prices to double within two weeks.
Price estimates per token range from $ 3,500 to $ 20,000, and a strike price for options contracts in December 2021 suggests possible $ 10,000 per ETH levels by the end of 2021.
The trend towards cryptocurrency could continue to be high at all times
According to Glassnode data, it’s not just Ethereum prices that set a new all-time high. The open interest for Ethereum futures contracts is at its highest level in history, suggesting that the volatility and trend are likely to be sustained for some time.
Related reading | Notes on the contract with Ethereum options for altcoin closing 2021 for 10,000 USD
Open positions for Ethereum futures contracts have reached a milestone of $ 4.5 billion, with Binance alone having open positions of $ 1.1 billion.
Open interest on ETH derivatives reaches ATH alongside new record | Source: glassnode on Twitter
Ethereum is only just hitting its previous all-time high and so far has only left one wick above the previous record. However, the market is well aware of what has just happened to Bitcoin and has doubled the price in a matter of days.
Traders are charging on Ethereum positions and expecting a similar move, but the previous all-time high could also create too much resistance and act as a turning point.
Is something different this time and the previous summit will act as the tip of the altcoin? Or will Ethereum follow Bitcoin and double its value in the coming days due to the open open interest of record futures?
Featured image from Deposit Photos, Charts from TradingView.com