The altcoin market experienced notable movement over the weekend as Solana (SOL), XRP, Cardano (ADA), and Tron (TRX) posted gains ranging from 15% to 90%. While Bitcoin and Ethereum remained relatively flat, the impressive performance of altcoins has raised questions about whether an altcoin season has officially begun. However, Ethereum’s struggle to surpass the $3,000 resistance level is seen as a key hurdle for a full market rally.
Altcoin Season Indicators: What Do Analysts Say?
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.
Solana emerged as a standout performer last week, rising 17% and successfully holding the critical $240 level. Analysts at QCP Capital highlighted how positive sentiment from crypto-friendly rhetoric, such as that of former U.S. President Donald Trump, has fueled optimism in the market. Meanwhile, Bitcoin’s march toward the $100,000 milestone continues to provide a solid foundation for Ethereum and other altcoins.
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, with a historical trend indicating a possible peak at $17,600. According to analyst Venturefounder, Ethereum’s narrowing price range is a precursor to significant upward movement within the next two years.
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 highlighted by Dey There, Ethereum’s robust support levels and Bitcoin’s upward trend remain key indicators for a potential altcoin season. Investors are closely monitoring market movements and Ethereum’s performance as they anticipate the next big shift in the crypto space.
Solana, Ethereum, altcoin season, Bitcoin dominance, institutional interest
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