Range-bound Bitcoin price opens the door for altcoins to move higher

Ether (ETH) took charge as a brand-new month starts and the second-largest cryptocurrency by market capitalization rallied to a brand-new all-time high at $3,338. This has lots of experts yelling out that a brand-new ‘altcoin season’ has actually started. Meanwhile, Bitcoin  (BTC) price is continuing to fulfill resistance around the $56,000 to $58,000 level. 

Data from Cointelegraph Markets and TradingView reveals that because dropping to a low of $2,160 on April 25, the price of Ether has actually rallied 54% to a brand-new record high at $3,324 on May 3 as Monday’s 12% spike raised the leading altcoin above the $3,300 level for the very first time in history.

ETH/USDT 4-hour chart. Source: TradingView

While a bulk of crypto traders are commemorating Ether’s price breakout, which has actually assisted raise job co-founder Vitalik Buterin to the crypto billionaire club, bearish traders are en path to heavy losses as almost each of the 76,000 put alternative agreements that are set to end on April 7 will end up being useless if Ether price handles to remain above $3,100.

And it’s not simply Ether that has actually been carrying out well since late. In the previous 2 months, the altcoin market as a whole has actually seen its worth boost 119% and turned the 2017 peak into a brand-new assistance level.

Ether HODL rates increase

According to Glassnode, an on-chain analytics company,  the quantity of Ether being held long term has actually been on the increase because late 2020 and this might be a contributing aspect moving the multi-month rally.

Ethereum HODL waves. Source: Glassnode

The chart above revealing “Ethereum HODL waves” shows that “coins appear to be maturing from 1-week to over 6-months old since late 2020 (blue arrows),” with the “proportion of coins aged 1-month to 6-months progressively increasing in thickness suggesting HODLing coins accumulated in the early bull market remains a favored strategy.”

Glassnode also pointed out that a large volume of Ether has been removed from exchange wallets in 2021, with 10 instances of withdrawals in excess of 200k Ether per day taking place in just 4 months as institutional demand and decentralized finance (DeFi) use grows.

Ethereum supply in smart contracts vs. balance on exchanges. Source: Glassnode

As seen on the chart above, the amount of Ether held on exchanges has been on the decline since September 2020 which coincided with a noticeable increase in the amount of Ether held in decentralized finance smart contracts.

Currently, the amount of Ether locked in smart contracts is outpacing the amount held in centralized exchange reserves.

Altcoins outpace Bitcoin for now

With Bitcoin still struggling to secure a daily close above $58,000, altcoins continue to make the case for an emerging altseason.

Daily cryptocurrency market performance. Source: Coin360

Waves (WAVES) was the breakout star of the day with its token price surging 41% to a record high at $36.41. Ethereum Classic (ETC) also rallied 15% to a new all-time high at $50.90.

After rallying 17.84% to $5,777 in the past 24-hrs, Maker (MKR) is now the top-ranked decentralized finance (DeFi) protocol with a total value locked of $10.92 trillion.

The overall cryptocurrency market cap now stands at $2.29 trillion and Bitcoin’s dominance rate is 46.6%.

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