The cryptocurrency market is hot these days, just like this tweet! Since then, Bitcoin has shot up over $104,000 and Ethereum is trading at $2,400 after its successful Pectra upgrade. This follows the global crypto market capitalization having surged 5.59% to $3.27 trillion as confidence returns to investors. Many altcoins are making big moves as well, and the Crypto Fear & Greed Index shows increasing optimism in the market.

Ethereum's recent gains are particularly noteworthy. The cryptocurrency benefitted 20% from the effect of this news in boosting its price to $2,400 following the successful implementation of the Pectra upgrade earlier in the week. Analysts have their eyes peeled to Ethereum’s price action. They identify strong short term support at $2,200 and set their next target at $2,500.

Altcoins Rally Amidst Market Optimism

Apart from BTC and ETH, a good number of altcoins are performing extraordinarily well. PEPE is still at the top with a 41% increase, followed by FARTCOIN at 28% and BRETT at 26%. Alternates VIRTUAL has experienced the highest increase of any term at 24%, and ENA was up 23%. This extensively-celebrated rally shows that there is serious, broad-based interest in non-Bitcoin cryptocurrencies.

The most plausible explanation for the recent altcoin surge is the more general positive sentiment flooding the market. The Crypto Fear & Greed Index, currently at 70/100, is nearing "Extreme Greed" territory, reflecting increased investor confidence and a willingness to take on risk. This optimism for the future of the crypto space frequently results in more trading interest and price appreciation for altcoins.

Trading Volume Skyrockets

This heightened market activity is best reflected through the large spike in trading volume. Crypto markets saw daily trading volume jump 73% to $202 billion. This spike is a testament to how strong the buying and selling pressure is on all of these different cryptocurrencies. According to the ICI, this jump in volume is further evidence that the current market rally is being driven by healthy investor demand.

Not all cryptocurrencies are experiencing gains. FORM has dropped by 4% and LEO has recently experienced a modest 1% drop. These shocking declines paint a broader picture revealing the volatile and speculative nature of the cryptocurrency market, where fortunes can be made or lost virtually overnight. Investors must continue to be wary and do their due diligence before engaging in any investments.

Market Outlook and Considerations

Today’s crypto market today is defined by huge bullish returns and a growing investor appetite. Bitcoin’s recent jump over $104,000 and Ethereum’s increase to $2,400 provide further examples of this bullish trend. The fact that the Crypto Fear & Greed Index recently found itself approaching “Extreme Greed” territory should be a cause for concern. Taking a look at what history shows us, times of extreme greed tend to be followed by a market correction.