06.05.202117:59 Forex Analysis & Reviews: ETH continues to gain momentum, altcoins are approaching important milestones: reasons and forecasts

The sixth month of 2021 began for the cryptocurrency market with conflicting indicators, which were exacerbated by talks about the introduction of taxes and tougher legal regulation. At the same time, the indicators of main assets continue to slowly but surely rise. Thanks to this, over the past day, the total capitalization of the crypto market increased by 4.5% and almost reached the $2.5 trillion mark.

ETH remains the main striking force of the cryptocurrency market, which continues to remain in high positions, suggesting the beginning of rapid growth. Over the past 24 hours, the asset has risen in price by 4% and returned to the previously set historical mark of $3,500. At the same time, the cryptocurrency continues to rise in price with powerful jumps, which are accompanied by an increase in the volume of daily trading. Ethereum positions are not in doubt and will soon continue to rise in price with interruptions for a local correction. Despite the recent pullback, the cryptocurrency regained its position in less than a day, which indicates significant market interest and support. The ether is at the forefront, and it is unlikely to experience problems until the next update. This is evidenced by the fact that the cryptocurrency practically does not react to negative news, entering the market. In the near future, we can expect the establishment of a new historical record by the main altcoin, which seized the lead from bitcoin.

The Ripple coin continues to recover its position. After the SEC's threats of legal proceedings for XRP investors, as well as statements about changes in interest rates in the United States, the cryptocurrency rose in price by 6.5% in 24 hours. The token is quoted around $1.64 and is approaching the important milestone of $1.7, where XRP may face market resistance. In the last few days, the asset shows low daily trading volumes, which indicates the lack of significant interest in cryptocurrency. The situation is similar for LTC, which continues to fluctuate in safe positions around $245-$260. The asset has no prerequisites for further growth, and recent announcements may even throw the cryptocurrency behind the usual indicators. In the current state of affairs of altcoins, there is nothing strange, given the real euphoria around ETH, which continues to develop and increase its audience.

On May 6, it became known that South Korea will introduce a 20% tax on profits from operations with cryptocurrencies. It is expected that this news will negatively affect the interest in assets in this region and will hit the quotes of crypto assets very hard today. In addition, the South Korean authorities have requested information from banks about bitcoin exchanges. The news that the US Internal Revenue Service will get access to the data of customers of the Kraken crypto exchange as part of the stricter regulation of cryptocurrencies did not add to optimism. Given the alarming situation around the cryptocurrency market, a significant price increase is not expected. In the near future, assets will continue to remain in safe positions without prerequisites for rapid growth.