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Ether breaks above $700: Will ETH lift altcoins as Bitcoin dominance drops slightly

  • Ether is trading above $700 for the first time in more than 2 years.
  • Bitcoin’s recent record-smashing run could have fueled Ether’s bullish sentiments.
  • ETH is 50% below its all-time high.

The bulls are back for Ether, the native cryptocurrency for the Ethereum blockchain, after crossing the $700 mark for the first time since May 2018. The digital asset is trading at $728, nearly 13% up against the USD in the last 24 hours, TradingView data shows.

ETH, the second-largest cryptocurrency with a market cap of $83 billion, is up more than 19% since the start of the month. The digital asset’s price has been going up due to the successful launch of the Beacon Chain, the first phase of the Ethereum 2.0 upgrade, on Dec. 1.  

The other factor could be bitcoin’s violent run in December, particularly during the Christmas period. Bitcoin’s price topped $28K before losing momentum and pulling back to the $26,600+ region.

Ether’s price usually moves in tandem with bitcoin. BTC’s recent bullish sentiments could mean a break-out for Ether, which is still 50% down from its all-time high reached in January 2018.

Ether’s bullish sentiments can continue in the coming year as decentralized finance (DeFi), one of the crypto’s hottest tickets in 2020, is projected to continue on its trajectory in 2021.

CME Group, the world’s largest financial derivatives exchange, announced in mid-December that it would list ETH future on Feb. 8 pending regulatory approval. This is a significant development as CME caters to institutions.

Will ETH lift altcoins

Ethereum’s rise could be seen as a big factor in the possible explosion of altcoin prices, leading to what many call the altcoin season.

Altcoins have faced mixed fortunes, with XRP nosediving due to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple.

Celsius (CEL), the native currency of Celcius Network, is up more than 57% in the past 7 days. The gains have seen the digital asset crash into the top 30 cryptocurrencies on CoinMarketCap.

Celsius Network founder Alex Mashinsky, who claims that CEL is the only token registered with the SEC, recently pointed out that coins deemed as securities are going down. 

Zilliqa (ZIL) has gained 67% of its value against the USD in the last 7 days despite a 2.5% loss in the last 24 hours.

Decred, OKB, Digibyte, Terra, Blockstack, Chiliz, Theta Fuel, Synthetic, and THETA are some of the top 100 cryptocurrencies registering gains of 20% or more in the last 7 days.

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