As we head into October, the cryptocurrency market is gearing up for more upside volatility, especially in the altcoin space, with the recent Bitcoin-induced breakout leading to a broader rally across the altcoin market.
Key metrics to watch during the alternative season
A key metric for monitoring a potential altcoin season is Total 2, which tracks total market capitalization excluding Bitcoin. Since October 13, this figure has surged more than 13% to around $576 billion as of this writing.
The altcoin sector is on the verge of a mini-upside move if the bulls succeed in breaking above the descending logarithmic resistance. Such a breakout could push the altcoin sector market cap to around $621 billion, which could signal the start of a macro bull run following two years of triangular consolidation.
Top altcoins to watch
Amid growing cryptocurrency speculation, several altcoins have had a bullish start to the week, hinting at further gains in the coming days. Top altcoins worth keeping on your watchlist include:
Solana (SOL): Solana has shown promising signs, with its value rising by more than 6% in the past 24 hours.
Monero (XMR): Monero is a privacy-focused cryptocurrency that has also demonstrated strength, making it a contender for potential gains.
Axie Infinity (AXS): Axie Infinity is a blockchain-based game that has seen a 6% increase in the past 24 hours, making it an exciting option for traders.
If Bitcoin’s dominance continues to correct in the coming days, these altcoins could see additional gains, providing more room for the altcoin market to thrive.
As Uptober draws to a close, the crypto market remains vibrant and full of potential, offering opportunities for traders and investors. Keep an eye on these developments as we explore the exciting world of cryptocurrency.
Ethereum Resiliently Breaks $1,800
Ethereum (ETH) is one of the leading cryptocurrencies that has shown remarkable resilience in the face of recent market volatility. Despite relatively modest gains compared to Bitcoin (BTC) and other major altcoins, ETH has managed to consolidate its position above the $1,800 mark.
The big question on everyone’s mind is whether Ethereum can maintain this level or if it will succumb to the current market sentiment.
In the cryptocurrency space, prices are very susceptible to market sentiment. Cryptocurrencies often experience wild price swings based on the emotions and perceptions of investors and traders. Positive sentiment tends to drive prices higher, while negative sentiment can cause prices to drop dramatically. In this particular case, the catalyst for market sentiment was the upcoming U.S. Federal Open Market Committee (FOMC).
The FOMC’s role in influencing ETH and crypto markets
The Federal Open Market Committee (FOMC) is an important department of the Federal Reserve that is responsible for formulating monetary policy in the United States. One of the main tools at its disposal is interest rate adjustments. When the FOMC meets, decisions about interest rates can have a significant impact on various financial markets, including cryptocurrencies.
If the FOMC decision leans towards a hawkish stance, implying a rate hike, it could lead to a surge in bearish sentiment across the cryptocurrency market. In this case, Ethereum sellers could exert pressure, potentially pushing the altcoin below $1,700.
Conversely, a dovish or unchanged policy stance could lead to more positive sentiment, allowing ETH to maintain its current position or even experience upside momentum.
Ethereum is trading at $1,816, up 1.8% in the past 24 hours and a notable 8.8% in the past seven days. While these gains may appear modest compared to the usual volatility in the cryptocurrency market, they reflect Ethereum’s ability to maintain a stable footing during turbulent times.
Ethereum Layer 2 Solution Breaks Records
One notable development in the Ethereum ecosystem is the excellence of Layer 2 (L2) solutions. These scaling solutions are designed to alleviate Ethereum’s network congestion and high gas fees.
Recently, the total locked value (TVL) of L2 solutions hit a new all-time high, briefly touching $12 billion before stabilizing at around $11.89 billion. This achievement surpassed the previous all-time high of $11.85 billion set in April, marking the growing adoption of Ethereum’s layer 2 solutions.
As the $1,800 threshold is a significant psychological barrier, the ultimate direction of Ethereum’s price action depends on a delicate balance between market sentiment and the decisions of major financial institutions.
If ETH corrects in the near future, it will not fall back to the levels it saw before the rally.
As investors take a positive stance on Bitcoin ETFs and ETH continues to strengthen, the U.S. SEC looks increasingly likely to approve some recent applications early next year.
That positive sentiment has trickled down to the rest of the market, with Ether starting to recover over the past week or so after investors spent months overselling the cryptocurrency.