One way to measure this market sentiment is with the Altcoin Season Index. If the Altcoin Season Index gives a reading of 75 or higher, it will be time to buy Ethereum. Roughly speaking, this is the time of the year when altcoins such as Ethereum outperform Bitcoin, the market bellwether. The calculation of whether it is altcoin season is remarkably simple.
All you do is check how many of the top 100 cryptocurrencies in the world are outperforming Bitcoin during the past 90 days. If that number is higher than 75 on the Altcoin Season Index, then it is altcoin season. If it is not, it is Bitcoin season. Ethereum does not need to be outperforming Bitcoin during the past 90 days for this indicator to work.
In fact, Ethereum is down 37% during the past 90 days, while Bitcoin is down 23%. That event, of course, is the arrival of altcoin season in the crypto market. Ethereum (CRYPTO: ETH) is now down almost 60% from its all-time high from six months ago and currently trades for a price of just $2,100. For the year, the world’s second-largest cryptocurrency is down 31%.
Leave a Reply