• Ethereum leads the charge as altcoins soar, with a 20% surge driving significant momentum in the crypto market.
• The market rally is driven by China’s interest rate cut and optimism, overshadowing the Fed’s lack of action.
• Ethereum’s rise above $2,000 signals growing investor confidence, with altcoins potentially starting a broader bull run.

Altcoins are soaring high with Ethereum (ETH) at the helm ahead, reaping in its first major upward motion in a long time. Ethereum has gone up more than 20%. This move has attracted the trader and investor’s eyes as the market undergoes a significant change in momentum.

Michaël van de Poppe highlighted that the price trend of altcoins surged after the Federal Reserve’s meeting on May 7, where nothing surprising had been seen. The Fed failed to cut interest rates and fears of inflation and tariffs are increasing. However, the market appeared to disregard the Fed’s move relying on the other happenings, especially the events occurring in China.

Source: X

On May 8th, a U.S.-UK tariff agreement relieved market tensions. The main stimulant for the rally on the other hand came from China. The Monetary authorities in China adjusted interest rates down to an all-time low of 1.3%. This has seen borrowing become cheaper and therefore stimulated economic activities. Other actions, like reducing rates of bank reserve and more quantitative easing, only helped to revive the market optimism.

Ethereum’s increase of over $2,000 is an important benchmark for the market’s shift. ETH has beaten Bitcoin by more than 20%, and its value has attracted investors in cryptocurrencies other than Bitcoin. This rally has made many wonder whether the surge is a temporary event or the beginning of a broader recovery phase.

This price was also the subject of arguments when Bitcoin was close to reaching $100,000. Some analysts believe that Bitcoin might be at its peak while others believe further growth is within its possibilities, in case interest rates further drop and more ETF investments are done. The resilience of Bitcoin in a bearish market is demonstrated by its strength, but attention has now turned to altcoins as the emerging growth opportunity.

The market sentiment has shifted from bearish to bullish, with Ethereum at the forefront. The appreciation in Ethereum’s price is indicative of growing adoption and investor confidence. Major events such as the news of Stripe making stablecoin payments on Ethereum have continued to generate hope. This may be an indication of a wider two-year bull run for the whole cryptocurrency sector.

The current rise in the prices of altcoins offers investors a new opportunity. However, care and careful observation are needed because the market fluctuates. The next weeks will tell if this rally is the beginning of a real bull market or with what other bottom the market will collide again.

Related: XRP Breaks Out with Strong Momentum, Faces Key Test Near $2.47