The ongoing market recovery has witnessed altcoin market caps surge over 5% this week, increasing the likelihood of an altcoin season. Ethereum (ETH) has notably outperformed Bitcoin (BTC) over the past 90 days, signaling potential capital rotation toward altcoins.
Key Market Trends
- Ethereum's strength against Bitcoin suggests shifting investor interest toward altcoins.
- Bitcoin dominance charts show risks of a double-top formation and bearish RSI divergence, hinting at altcoin opportunities.
- Alt Season Index improves as the total crypto market cap (excluding BTC) surpasses $1.22 trillion.
- Veteran analyst Peter Brandt highlights Ethereum's upside potential while cautioning about Bitcoin's volatility.
Ethereum Leads Altcoin Rally
CoinMarketCap data reveals Ethereum surged nearly 48% over 90 days, outpacing Bitcoin’s 31%. ETH/BTC trading pairs also climbed 44% from April’s low of 0.01766 BTC to 0.02549 BTC, with key resistance levels at 0.02606 BTC and 0.03020 BTC.
Technical indicators support bullish momentum:
- Weekly MACD: Positive crossover.
- RSI at 46: Declining bearish pressure with room for upward movement.
👉 Why Ethereum’s rally matters for altcoins
Bitcoin Dominance at Risk
BTC dominance faces a potential drop below 64%, with critical chart patterns signaling weakness:
- Double-top formation on weekly charts.
- Bearish RSI divergence near overbought territory.
- Key support levels: 63.11% (May low) and 55.36% (long-term trendline).
A sustained decline could accelerate altseason opportunities.
Alt Season Index Gains Momentum
The CoinMarketCap Altseason Index rose from 17 to 32, reflecting:
- 75+ score: Official altseason threshold.
- Current trend: Declining BTC dominance (25–50 range).
Analyst Insights: Ethereum vs. Bitcoin
Peter Brandt’s Take:
- Bitcoin: Risks mirroring 2022’s 75% correction due to double-top patterns.
- Ethereum: Breakout above $2,816 confirms bullish bias; targets include $3,525 (78.6% Fib level).
ETH/USDT Technicals:
- Golden cross (50 EMA nearing 200 EMA).
- MACD buy signal on daily charts.
👉 How to spot altseason entry points
FAQs: Navigating Altcoin Season
Q1: What triggers an altcoin season?
A: Ethereum-led rallies, declining BTC dominance, and improved altcoin market caps.
Q2: How long do altseasons typically last?
A: Weeks to months, often peaking after Bitcoin stabilizes.
Q3: Which altcoins benefit most?
A: Large caps (e.g., ETH) historically lead, followed by mid-cap projects.
Q4: Is now a good time to buy altcoins?
A: Monitor ETH/BTC pairs and BTC dominance for confirmation.
Q5: What risks should investors consider?
A: Volatility, regulatory shifts, and BTC price reversals.
Conclusion
Ethereum’s outperformance and weakening BTC dominance create fertile ground for altseason. Traders should watch key technical levels and diversify strategically.
👉 Explore top altcoin strategies
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