Ethereum's recent growth amidst Bitcoin's decline has caught the attention of analysts, suggesting a potential altcoin season is on the horizon.
Ethereum’s Rise During Bitcoin’s Retreat
Bitcoin recently soared to a record $120,000 before slipping back below $117,000. Meanwhile, Ethereum jumped to $3,128, marking a 20% rise over the week and 4% in the last 24 hours. This is Ethereum's highest level in five months. Analysts like Greg Magadini from Amberdata state that 'ETH is gaining traction again' after years of lagging behind BTC.
Institutional Demand for Ethereum
An increase in institutional ETH purchases supports the theory of shifting market momentum. Sharplink Gaming purchased $225 million worth of Ethereum, while BitMine has pushed its ETH holdings above $500 million. Simultaneously, Ethereum-based funds have seen 19.5% AUM growth over 12 weeks, twice that of Bitcoin ETFs.
Signs of an Approaching Altcoin Season
Analysts, including Michaël van de Poppe, believe Ethereum might be the 'kickstarter' for altcoin cycles. Other major coins like Solana and Chainlink are also showing signs of upward momentum. If Ethereum maintains its position above $3,100, it could set the stage for a full-blown altcoin breakout.
With the growing interest in Ethereum and its potential impact on the altcoin market, the situation will be closely monitored by the crypto community.
