Michael van de Poppe: Ethereum will trigger the growth of altcoins by 500%

The rise in the price of Ethereum ETH $4,052.92 Bridged Ether (StarkGate) 4.89% Market capitalization $0.11 billion VOL. 24 hours $3.04 billion has signaled the potential start of a large-scale altcoin rally, analysts say. Michal van de Poppe, co-founder of MN Trading Capital, said that he is now «fully into altcoins» and predicts that altcoins could grow by 200−500% in the next 2−4 months. In his opinion, ETH’s recent surge is the first step toward returning the market’s appetite for risky assets outside of bitcoin BTC $116,507.51 Bitcoin -0.67% Market capitalization $2.32 trillion VOL. 24 hours $1.26 billion .

According to Nansen, the price of Ethereum increased by 6% over the day and reached $ 3,854. The ETH/BTC ratio has jumped by 38.5% over the past month, reflecting the strengthening of ETH’s position compared to bitcoin. This growth is seen by many as an early indicator of the future growth of the entire altcoin sector.

At the same time, some traders remain cautious about the sustainability of the current trend. In particular, Ash Crypto analyst recalled the traditional weakness of ETH in the third quarter of the year: the average return on ETH in this period since 2016 is only 6.5%. Other market participants point out that this time, history may not repeat itself due to a new wave of institutional interest and a reduction in the supply of the token on exchanges.

Some analysts, such as Wolf, believe that it should not be surprising if Fundstrat’s forecast of ETH’s growth to $ 16,000 comes true: «Volatility, distrust, and then a vertical leap,» the expert summarizes. At the same time, ETH’s movement to $ 4,000 may result in the liquidation of short positions worth more than $ 800 million.

In general, market sentiment remains optimistic about ETH and altcoins, but experts advise taking into account the possible seasonal weakness of the third quarter and being cautious when making investment decisions.