It has been an exciting month for the cryptocurrency industry, especially for the largest digital asset. Bitcoin reached a new all-time high of $67,000 earlier last week. However, rather than forging ahead with further market momentum, BTC has shown faded strength on the charts.
For the most part, Bitcoin rallied the collective industry this month. In the last few days however, the asset has corrected by more than 10%, momentarily falling below $ 60,000.
However, at press time, the asset had recovered and was close to $63,000. That said, there is another coin, waiting behind the scenes, and over the next week it could be on the bullish wheel.
Ethereum taking Bitcoin for a ride?
An article on AMBCrypto last week, discussed the likelihood of an altcoin season down the line, but the dynamics have relatively changed over the past few days. BTC is expected to exceed $ 70,000 after its ATH violation. However, this was not the case and consolidation may have set in early.
Now, keeping that in mind, the ETH/BTC chart is indicative of multiple signs which suggest that it might be Ethereum‘s week to establish bullish momentum.
As observed, ETH / BTC broke down resistance that has been holding since early September. It was tested a couple of times on 16 September and 3 October, 2021, but on 23 October, ETH/BTC established a position beyond the resistance.
Another uptrend seen in the chart was the formation and break of a monthly double bottom. On 23 October, ETH/BTC also moved and closed a candle above the pattern, which can be taken as a further confirmation of the bullish pattern.
With Ethereum encountering some resistance at $ 4,150 at the time of publication, a breach above $ 4,200 at $ 4,300 could see the larger Altcoin take over over the next few days.
Altcoins to benefit from ETH’s market rage?
Further, it is quite clear that liquidity flowing into Ethereum would indirectly impact other alts’ rallies in the market as well. According to Skew data, Ethereum Classic and Chainlink are the most likely to follow Ether. With a strong correlation of 0.89 and 0.84 with ETH, both ETC and LINK struggled over the past few weeks to establish bullish momentum.
With Ethereum surpassing and potentially hitting a new all-time high, ETC and LINK could follow suit as assets appeared to break through their own respective resistance levels of $ 60 and $ 40 at the moment.
