Liquidity in alternative markets is strong as bitcoin underperforms ether after a battle that raged throughout 2022.
Ether (ETH) is worth more in Bitcoin (BTC) than since the beginning of the year amid renewed appetite for altcoins.
ETH/BTC 1-Day Candlestick Chart (Binance). Source: Trading View
Altcoin market capitalization returns to $700 billion
Data from Cointelegraph Markets Pro and TradingView confirms that ETH/BTC broke key resistance on August 13 and topped 0.08 BTC.
The move is impressive for the largest altcoin, Ethereum, as the 0.075 area represented a troubled selling zone that had previously held back bulls since January.
At the time of writing, ETH/BTC is working to hold onto the newfound level as traders wonder how long its strength will last.
As Cointelegraph previously reported, ETH/USD topped $2,000 overnight, a significant psychological barrier not seen since May.
Analyst firm Glassnode has noticed a trend to rush altcoin development, noting the desire of investors to increase risk in the current climate.
“According to Swissblock’s Altcoin Cycle signal, some of Bitcoin’s strength has waned as investors exited altcoins in a lower risk environment,” co-founders Jan Allemann and Jan Happel wrote in the latest issue of their Uncharted newsletter:
“Since the Ethereum merger has become more apparent, Ethereum has outperformed Bitcoin and pushed altcoins higher.”
According to TradingView and CoinMarketCap, the total altcoin market capitalization also reached its highest level since the end of May this week at over $700 billion.
The market capitalization of an altcoin on a 1-day candlestick chart. Source: Trading View
ETH price analysis still favors a bear market
As for potential Ethereum price targets, however, traders remained conservative after several months of bullishness.
Related: Price Analysis 8/12: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, AVAX
“$ETH to $2200 as long as we stay above $1737,” the popular Crypto Chase account summarized:
“Once unused highs are locked in (and not reversing), other highs will generally suffer the same fate. I don’t have the exact level or settings for long possibilities yet, but I’ll update them if I see them.
“LTF trend versus uptrend: I expect a breakout if $2,000 -> $2.4000 is claimed,” continued his account colleague Karush A.K.:
“HTF Neutral Bearish: This is not a bull market, but more of a bear market. Diving bag owners are blessed with the opportunity to reduce risk at $2,000 resistance.”
Meanwhile, in its latest market review for Telegram channel subscribers, trading firm QCP Capital stressed the need for a cautious approach for further growth in the growing altcoin market.
Of particular interest, staffers wrote, is open interest (OI) in the derivatives markets, with ETH nearly doubling BTC activity.
“ETHBTC broke the 0.08 mark and open interest in ETH options (OI) is at an all-time high of $8 billion, eclipsing the $5 billion BTC options OI. This is unprecedented,” she wrote:
“Hard fork concerns persist as September ETH futures trade below -8% (year-on-year) versus spot. We made some profit on our long position compared to our short position on the futures spread.”