The market has witnessed sharp changes in the top cryptocurrency Bitcoin since the price of Solana rose above a narrow consolidation level. BTC price has been trading below $44,000 for over a week now, and bulls appear to be waiting for a new catalyst to push the price above $45,000. This has also led to a notable rise in popular layer 2 solutions Arbitrum and Optimism.
Now that tokens built on Ethereum have risen through consolidation, could the price of ETH also soar above $2,500? How will other altcoins react if this happens? Could this be seen as the start of a new AltSeason?
Layer 2 Chain Gaining Strength
Ethereum is one of those tokens that is known to rise slowly and steadily. The token is currently building up the strength to make a notable rally above $2,500, which could happen in the coming days. This shows that the token is gaining significant strength against Bitcoin, although the bulls have a solid base to trigger a healthy uptrend. This signals the resurgence of a strong bull trend within altcoins, which could trigger a strong AltSeason.
As the market strengthened with BTC price rising slightly, Arbitrum and Optimism prices surged more than 20% and 10% respectively. Bitcoin forks such as BitcoinCash and BitcoinSV have also seen gains, but the market appears poised for a significant rebound. Although ARB price has surged past temporary resistance at $1.34, the OP price is currently close enough to test ATH.
Will this rise trigger an AltSeason?
Considering the current price movement, the price of Ethereum appears to be stronger than Bitcoin. Prices rose beyond the ascending triangle in the first few days of December and continue to consolidate beyond the bullish range.
After some consolidation within the current price area between $2,100 and $2,300, ETH price is believed to break above the temporary resistance level of $2,386 and eventually rise above $2,529. This move will significantly reduce the gap between current levels and the $3000 target. Ethereum (ETH) price is currently undergoing a retest, and a new upward trend may follow after its completion.
Changes in the price of Bitcoin mainly affect the top 10 cryptocurrencies, but changes in the price of Ethereum can affect most altcoins. The charts are being prepared just before the ETF decision. Barring short-term volatility, this would be an optimal environment for a strong bull rally.