The analyst says Altcoins remain bearish as Ethereum struggles to rally

• Altcoins have moved significantly higher in the past few days and weeks, with the DeFi sector in particular seeing tremendous momentum
• This comes after a multi-month losing phase that altcoins have faced, with those residing in the DeFi sector particularly affected by this.
• Ethereum’s recent explosive rally, however, has helped put an end to this trend
• The cryptocurrency saw a retracement last night, however, and is once again overtaken by Bitcoin
• A trader is now observing that the aggregate market cap of altcoins versus that of Bitcoin is painting a gloomy picture for smaller tokens.

Ethereum has been firmly leading altcoins over the past few days and weeks, with smaller tokens following in its footsteps closely.

Although last week was incredibly bullish for altcoins, Bitcoin’s ongoing push above $ 16,000 is once against the room’s oxygen draw and causes many to see slight retreats.

ETH is also underperforming BTC, trading below its daily high as BTC is making over $ 16,000.

Until Ethereum is able to match Bitcoin’s momentum and exceed $ 500, there is a strong possibility that the aggregate cryptocurrency market will continue to face mild weakness.

Ethereum Struggles to Rally Alongside Bitcoin; Hit Altcoin

Most of the major altcoins are trading lower from their daily highs, which this drop occurred due to Bitcoin’s underperformance of Ethereum.

As seen on multiple occasions in the past few weeks, altcoins tend to drop lower as Bitcoin is rising and gaining momentum once it enters a consolidation phase.

Unless Ethereum cannot exceed $ 500 in the short term, there is a strong possibility that this trend will persist.

Altcoins “look awful” against Bitcoin, says the analyst

Comparing the market cap of altcoins to that of Bitcoin, an analyst noticed that there is a good chance these tokens will face continued weakness in the short term.

He added that Ethereum’s underperformance would contribute to this weakness.

“We’ve had a few good days on ALTS and ETH, but the ALTS / BTC chart still looks awful. Just looking for quick entries and exits before ‘annual’ is resumed,” he said.

Image Courtesy of Mac. Chart via TradingView.

Ethereum’s next trend is likely to play a huge role in understanding where altcoins go in the short term.

Any continuing weakness seen by ETH could deal a lethal blow to these tokens.

Featured image from Unsplash.
Charts from TradingView.