It is a known fact that the altcoins follow the second largest crypto, Ethereum. Moreover, when the token displays acute strength and becomes stronger than Bitcoin, the probability of an altcoin cycle emerges. This has been happening each time during the previous cycles, and hence a similar trend was expected to mirror the present.
Unfortunately, after maintaining a consolidated sideways trend for over a couple of weeks, the rally failed to gather the required volume and momentum. Therefore, now it is believed that the ETH/BTC pair could be all set to reach the lower support, which may fade away the possibility of an altseason for a while.
The ETH/BTC pair had earlier plunged below the pivotal trend line and also registered a failed attempt to reclaim these levels. After the strong rejection, the pair dropped heavily and began to consolidate within a narrow region. Presently, the rally is hovering very close to the lower support, and with the volume decreasing every week, the possibility of plunging below the first support emerges.
This could probably postpone the start of an altseason that could have offered altcoins a fine base to trigger a healthy upswing. Now that the altcoin rally may need some more time to thrive, whale activity has surged to a large extent. According to the data from Santiment, huge transactions have been recorded—more than $10 million on various networks.
Popular altcoins like Aave (AAVE), Apecoin (APE), Compound (COMP), ImmuableX (IMX), Lido DAO (LDO), and Measurable Data Token (MDT) have been attracting the whales. These whale movements have, however, created a lot of speculation within the market, one of which could be preparation for the impending altcoin rally. Therefore, now it is important to monitor the whale’s activity and behaviour to anticipate its upcoming move within the space.