The altcoin market is showing signs of recovery, supported by rising prices of Ethereum and increased trading activity on Binance. Key points from the current situation are highlighted.
Altcoin Market Structure Remains Intact
The total altcoin market cap, excluding Bitcoin and Ethereum, remains steady around $979.98 billion. This figure hovers just above the critical 0.5 Fibonacci retracement level of $923.39 billion, which has historically impacted trends. Earlier this year, altcoins peaked at $1.09 trillion, followed by a correction, and current gains suggest a potential breakout above this level.
Traders Are Moving Back In — Fast
According to CryptoQuant, altcoin inflows to Binance have surged past 45,000 in a week, marking the highest figure since late 2024. This surge occurred as Bitcoin briefly crossed $115,000. Historically, influx spikes indicate traders stepping back into the market, preparing for the next upswing.
Ethereum Leads the Charge
Ethereum has been a front-runner in the recent altcoin momentum, rising from under $3,000 to around $3,770 since mid-July. This price surge has been accompanied by significant acquisitions from firms like Sharplink, which now holds over 438,000 ETH. Altcoins currently account for 83% of all crypto futures volume, suggesting that traders are reallocating capital into altcoins.
With Ethereum's strong growth and an uptick in trader activity, altcoins are poised for further upward movement, presenting new opportunities in the market. Monitoring support levels and trading volumes will be crucial for informed decision-making.
