The price of the world’s second largest cryptocurrency, Ethereum, hit the $ 2,000 level for the first time since February 20, as altcoins took advantage of the recent sideways trade in Bitcoin. Altcoins is a cumulative term used to define cryptocurrencies that came after Bitcoin.
Among the altcoins, the DeFi tokens have been the biggest driving force behind stealing the limelight again after non-fungible tokens (NFTs) rose in popularity over the past 1 months.
“We saw 2020 as a year with large hedge funds taking positions in Bitcoin. Other institutions and celebrities like Elon Musk, who took Bitcoin more seriously, soon followed. Today Bitcoin is consolidating and all eyes are on Bitcoin dominance. We are all waiting for the old season. If bitcoin dominance declines, we could enter another altcoin cycle. We hope Bitcoin will stay stable at current levels so that the altcoin markets can improve, “said Siddharth Menon, co-founder and COO of WazirX, a cryptocurrency exchange.
At 6:50 p.m. IST, Ethereum was trading at $ 2,002.53, up 4% after hovering in the $ 1,912.72 to $ 2,008.99 range for the past 24 hours, according to CoinGecko. The digital asset is only 2% away from its all-time high of $ 2,042.93 on February 20th.
“Ethereum appears to be only a few hours away from repeating its previous all-time high. As bullish as the breakout may seem, Ethereum needs to hit a new all-time high for any kind of meaningful momentum to follow. That said, the $ 2,000 level should be carefully monitored over the next 24 hours for further insight into whether or not this latest breakout has legs, “Kraken said in a note.
Meanwhile, Bitcoin was unchanged at $ 59,303.20 after hovering in the $ 58,246.98-60,323.16 range for the past 24 hours. The digital currency generated positive returns for the sixth consecutive month in March.
“Historical returns and volatility seem to suggest that Bitcoin is incredibly well positioned to generate another month of positive returns in April as market volatility comes back into the picture,” Kraken said.
For the 2020-21 fiscal year, Bitcoin achieved a return of over 800%. From $ 6,641 on April 1, 2020, the price of the digital currency rose over the course of the year to an all-time high of $ 61,711.87 (hit on March 13, 2021). While Ethereum gained a whopping 1,272.9% in the last fiscal year. Starting at the $ 130 level, the digital asset will trade around the $ 1,828 level as of March 31st.
Subscribe to something As good as new newsletter
* * Please enter a valid email address
* * Thank you for subscribing to our newsletter.