The altcoin market saw notable movements over the weekend with Solana, XRP, Cardano, and Tron posting gains ranging from 15% to 90%. Meanwhile, Bitcoin and Ethereum remained relatively flat, sparking questions about the onset of altcoin season.
Altcoin Season Indicators
Market analysts suggest that a true altcoin season may still be on the horizon. According to a report from QCP Capital, altcoins historically perform better during Bitcoin and Ethereum consolidation periods following major rallies. With Bitcoin dominance currently at 60%, analysts believe this figure must drop below 58% to confirm the onset of altcoin season.
Ethereum's Role in the Altcoin Rally
Ethereum's performance remains pivotal to the broader altcoin rally. After briefly reaching $3,444 in early November, Ethereum retraced 10% to hover near the $3,000 support level. Analyst Ali Martinez pointed out that 2.82 million addresses accumulated 6.14 million ETH in this zone, forming a strong base for potential upward movement. Projections for Ethereum’s future are also optimistic—a logarithmic regression model suggests ETH could rise to $9,200 by mid-2025.
Institutional Interest and Market Outlook
Institutional interest has further heightened expectations for an altcoin season. The potential return of Donald Trump to the presidency is speculated to bring favorable changes to crypto policy, reigniting interest in Ethereum and other altcoins. Increasing demand for spot Ethereum ETFs and sustained net positive flows continue to support these expectations.
As investors closely monitor market movements and Ethereum's performance, the potential for an altcoin season remains in focus. Key indicators include Ethereum's robust support levels and Bitcoin's upward trend.
