In the late hours of Thursday, the crypto market began experiencing a surprising upsurge. After a long day of setting higher supports, the crypto market finally broke above. Ethereum has been recording gains of more than 20%. The surge has seen Ethereum climb from the $110 levels to over $150.
Other top cryptocurrencies also enjoying the upsurge is Bitcoin. The top crypto has also added more than 20%. Bitcoin Cash and Bitcoin SV are two of the best performers adding more than 30%. XRP, the third-largest cryptocurrencies, is rallying by 15%.
For Ethereum, despite the latest surge, there’s still potential for a sell-off. ViewBase has noted that Ethereum inflows into exchanges than outflows have soared. This means that investors could be preparing to cash in. ViewBase adds that the exchange deposits have exceeded previous highs when Ethereum fell below $89.
Bitcoin, in contrast, saw inflow into exchanges fall drastically (74,951) according to CQ Live. Its surge inflow (223,919) came on 12th-13th March before it dipped below $5K.
Can Ethereum Trigger The Altseason Again?
During the first two months of the year, Ethereum doubled its value. Being among the first cryptocurrencies to rally at the start of the year, Ethereum inspired the short-lived altseason. Given the trend it’s setting now, the largest altcoin by market cap could be looking to do it again.
For this, Ethereum needs to continue outperforming Bitcoin and luring investors to invest in it. With time, Bitcoin dominance will fall and see altcoins strengthen their positions in the market.
The crypto boost has been celebrated by the crypto community. Finally, the crypto market has decoupled from traditional markets. This means that crypto can finally be hedged against inflation, acting as a safe haven. The breakout could also be a confirmation of bottoms being achieved last week.
The crypto community, however, remains wary with recent market movements proving irrational.
Recently, Google searches have shown that investors are again interested in Bitcoin. If Bitcoin can keep up the upward trend, we could see FOMO coming back and the crypto market explodes over the coming weeks.