Ethereum’s Bullish Breakout Prior to Bitcoin’s Halving Points Towards an Impending Altcoin Season of Remarkable Proportions
In a significant development, Ethereum’s (ETH) price surged above $3,270 on Tuesday, marking the first time in over 25 months. This impressive rally follows a bullish close last week and is attributed to the growing demand for digital assets from retail traders and institutional investors, which has sparked an early parabolic bull run.
As a result of this surge, many analysts believe that the possibility of a mega crypto bull run has significantly increased. Furthermore, Bitcoin’s price is now less than 30 percent away from its all-time high, and the fourth halving is yet to take place. Despite Grayscale’s notable GBTC outflow, the inflow of crypto cash has escalated over the past four weeks.
The last time Ethereum experienced such an explosive monthly candle was during the peak of the bull market in mid-2021. The fact that ETH is already rallying to such an extent this early in the cycle suggests that this cycle will be on another level.
It is expected that Ethereum’s price action will closely mirror that of Bitcoin in the confirmed bull cycle, as observed in the past few years. However, it is worth noting that Ethereum will register higher gains than Bitcoin due to the diminishing returns effect. The explosive monthly candle seen in the ETH price during the 2021 bull run supports this expectation.
The altcoin market is also expected to experience a bullish run in the coming months. The total altcoin market capitalization has already seen a successful breakout and retest in recent months. With Bitcoin nearing its local top, profits are expected to be distributed to the altcoin market at an accelerated pace. This will result in further gains for small and low-cap altcoins, including meme coins.
Famous crypto trader Jelle, on the X platform, advises investors to focus on spot holding to avoid losses through leverage trading during this altcoin season.
From a technical perspective, Ethereum bulls have the upper hand as the weekly Relative Strength Index (RSI) has rallied above the 70 level for the first time in over two years. The Ethereum price is now aiming to reach $3,750 in the near term, aligning with the 3.618 Auto Fib Retracement.