Ethereum’s consolidation sets stage for fresh altcoin rally, analyst says

Ethereum has performed quite well in this bull cycle, and may be prepared to head to higher prices as the market gears up for bigger rallies.

The asset recently entered a consolidation phase where it has oscillated between $4400 to $4500, which an analyst on 4 October said is preparing the stage for the next altcoin rally.

Ethereum has historically been the trigger for altcoin rallies, and this time will not be different as analysts expect this consolidation to serve as a springboard.

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A little more slumber

The second largest crypto by market cap, Ethereum has been in consolidation lately as Bitcoin continues to outperform altcoins.

Bitcoin even crossed the $120,000 threshold yesterday and is now trading at over $122,000, with higher prices expected.

This pattern has historically been seen in the progression of market rallies — Bitcoin first, Ethereum, and altcoins.

The analyst Michaël van de Poppe believes it is the same pattern in play and altcoins will rally once Ethereum breaks out of consolidation in one to two weeks.

Meanwhile with this slumber, Bitcoin will have the opportunity to keep outperforming, as analysts see a new all-time high on the horizon if the momentum is sustained.

Backed by interest

Ethereum’s consolidation is not a sign of weakness as some may think, because it has great potential building up to bring it into the next rally.

The asset is also backed by massive investor interest, which is a key driver of price rallies.

Just yesterday, BlackRock scooped over $2 million worth of the token, which is a show of huge investor interest.

With this rate of interest, Ethereum is expected to break out strongly when the consolidation is over, and this will also become a strong push for altcoins to start their rally.