The team at Weiss Ratings went on to add to the theory of a new phase of alt-season through the following statement and accompanying chart.
This altcoin season looks like it might be significantly wilder than 2017. If the traditional altcoin cycle is true this time around, then we are just getting started with this move in ETH (chart by @rektcapital)
The demand and bullishness surrounding ETH is evident in the premium of the Grayscale Ethereum Trust (ETHE) flipping back to positive. For the last two months or so, the premium had dropped into negative territory thus leading many traders to believe that institutions were no longer bullish
on Ethereum.The chart below, courtesy of Skew, provides a visual cue of the ETHE premium since January.
As has always been the case, the key to Ethereum and altcoins thriving is Bitcoin providing the ideal environment
necessary. At the time of writing, the crypto markets are a sea of red after Bitcoin fell hard from $55k levels to a local low of $47,500.Many crypto traders are of the opinion that the dip was the result of a new proposal by President Biden’s administration to increase capital gains tax for wealthy individuals earning more than $1 Million a year. The proposal seeks to increase capital gains tax from the current 20% to 39.6%.
Bitcoin is yet to stabilize from the effects of the news. However, Ethereum has maintained a value above the crucial $2k price area and is currently trading at $2,240. Therefore, ETH still has the potential of reigniting the next phase of altseason. Caution is also advised when trading Bitcoin and altcoins using high leverage in the current market conditions.