Ethereum has started the month of July on a strong note, outperforming Bitcoin in terms of price performance. This could potentially signal the beginning of an altcoin season, as historical data suggests that when Ethereum outpaces Bitcoin, it could lead to a broader rally in the altcoin market.
According to data from CryptoRank, Ethereum has seen a price increase of more than 2.50% since the start of July, while Bitcoin has only risen by 1.20% during the same period. This early outperformance by Ethereum is a positive sign for the altcoin market, as it indicates that investors are showing renewed interest in alternative cryptocurrencies.
If Ethereum continues to outperform Bitcoin, it would mark only the second time this year that Ethereum has done so. The first instance was in May when Ethereum rallied by over 41%, compared to Bitcoin’s 11.1% increase. Although Ethereum has not yet reached its all-time high of $4,800, its recent rally has already had a positive impact on the altcoin market, with coins like PEPE and BONK experiencing significant gains.
In the past, Ethereum has been a leading indicator for the altcoin market, so its current outperformance of Bitcoin bodes well for the overall market. If Ethereum were to rise by another 41% from its current levels, it could potentially reach $4,000, a significant milestone for the cryptocurrency.
However, historical data shows that July has not always been the best month for Ethereum, with an average return of +5.13%. The third quarter as a whole has been a mixed bag for the altcoin, with an equal number of positive and negative closes over the last decade. It remains to be seen how Ethereum will perform in the coming months and whether it can continue to outpace Bitcoin.
Overall, the performance of Ethereum in July is a positive sign for the altcoin market, and if this trend continues, we could see further price increases in the coming weeks. As always, cryptocurrency markets are unpredictable, so investors should exercise caution and conduct thorough research before making any investment decisions.