Is It Altcoin Season? Here’s Why ETH Price Surge Is Crucial
Highlights
- BTC dominance at 60% needs to drop below 58% to confirm the start of a full-fledged altcoin season, per QCP Capital.
- Ethereum (ETH) remains pivotal to the altcoin rally and has rebounded after strong support at $3,000.
- Logarithmic regression model suggests a potential ETH price rally to $9,200 by May 2025.
Cryptocurrencies like Solana (SOL), XRP, Cardano (ADA), Tron (TRX) are taking charge with 15-90% gains over the past weekend. As Bitcoin and Ethereum moved sideways amid the altcoins pump, it has raised speculation about whether it is altcoin season. However, this rally remains incomplete without the ETH price surge as the world’s largest altcoin takes some rest at $3,000.
When Will the Altcoin Season Start?
The real rally hasn’t yet started! Historically, altcoins have outperformed during consolidation phases following major rallies in BTC and ETH, as profits rotate into smaller-cap coins. QCP Capital noted that BTC dominance currently sits around 60% but would need to drop below 58% to confirm the start of an altcoin season.
In its report, QCP Capital shows that the Solana price has witnessed a quick uptick over the last weekend gaining 17%, and is holding up to the crucial resistance of $240. Analysts at QCP noted that the pro-crypto stand of the Donald Trump administration has triggered a euphoria for an impending altcoin season.
They also added that the BTC price eyes $100K amid favorable conditions. However, as the Trump administration resumes office in January, the investor appetite for altcoins could increase with the hope of favorable crypto policies.
Despite Bitcoin ETF outflows last Thursday and Friday, BTC maintains robust support, driven by institutional interest. Furthermore, top corporations like MicroStrategy and Metaplanet have continued with massive Bitcoin purchases even at $90,000 levels.
ETH Price Rally Remains Crucial
While the altcoin market has given staggering returns, the ETH price gains didn’t witness expected gains. After hitting a high of $3,444 in early November, Ethereum has retraced nearly 10% since then. Price of ETH today has bounced back 1.13% at press time after finding strong support at $3,000 levels.
Popular crypto analyst Ali Martinez noted that there’s a strong demand zone at $3,000 as 2.82 million addresses accumulated over 6.14 million ETH. It will act as a strong support for an Ethereum rebound in order to contribute to the altcoin season.
Additionally, the Ethereum Logarithmic regression model suggests that the price can rally to $9,200 at the top of the band by May 2025. If the rally extends further as per the historical trends, it can also rally all the way up to $17,600. It indicates that analysts anticipate altcoin season next year.
Crazy good data model by @intocryptoverse:$ETH topped at band 10, bottomed at band 2 in the first cycle; then it topped at band 7, bottomed at band 4 in the second cycle.
The range is getting coiled into a triangle
band 6 top by mid 2025 = $9.2k #Ethereum, band 7 = $17.6k… pic.twitter.com/ka3PvQr7jD
— venturefounder (@venturefounder) November 19, 2024
Furthermore, the spot Ethereum ETF has seen renewed interest following the Donald Trump victory, thereby turning the net flows positive.
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