Ethereum is preparing for a significant breakout, with analysts believing it could usher in an altcoin season. The expected ETH rally could occur in one to two months, aligning with the end of quantitative tightening and the potential start of quantitative easing.
Economic Shifts and Market Confidence
Polymarket data confirms a 100% probability of quantitative tightening ending by May. Besides technical factors, economic conditions also favor crypto market growth. The Federal Reserve's tightening phase appears to be ending, creating room for liquidity expansion, which may lead to a rally in risk assets like cryptocurrencies.
Role of M2 Money Supply in Financial Prospects
M2 money supply growth indicates potential liquidity injection into markets, often correlating with asset price surges. These elements bolster confidence in an impending altcoin rally, as market participants keenly observe the anticipated ETH breakout.
Historical Trend Analysis
Past market structures suggest a repeating bullish cycle. Analysts highlight parallels between 2020 and 2025 trends. In 2020, total market capitalization broke out of a consolidation phase, leading to a parabolic rise, while recently the market broke a descending trendline, mirroring a similar pattern.
Historical trends and current economic conditions point to a possible significant expansion of the crypto market, with Ethereum's anticipated breakout potentially acting as a catalyst.
