Altcoins remain in the red, seemingly waiting for a catalyst to spark momentum. On January 23, 2026, the Russell 2000 achieved a “Cup & Handle” breakthrough, an event that has historically signaled positive trends for altcoins.
Coupled with a strong crypto market cap and Ethereum/BTC showing signs of breaking its downtrend, the stage is set for a possible altcoin rally.
The Russell 2000 “Cup & Handle” Escape: Explained
As of this writing, the Russell 2000 has passed the critical threshold of $2,461, completing its “Cup & Handle” model. Small-cap rallies like this are often a sign that investors’ appetite for risk is returning, and that’s generally a good thing for altcoins.
Source: TradingView
If the breakout holds, this could be the momentum altcoins have been desperately waiting for. Momentum indicators showed strength, reinforcing the bullish outlook.
But if the index falls back below the neck line, we may have to reconsider the outlook, this is a critical time for the market.
Is a $1.7 billion market cap on the horizon?
At press time, the total crypto market cap (Total 2) formed an ascending triangle, an uptrend suggesting a potential breakout. Support near $1.2 trillion remained firm, and if the market continues to grow, the next breakout target was $1.7 trillion.
Source: TradingView
Privacy Coinslike Monero (XMR), Zcash (ZEC) and Dash (DASH), also posted strong performance, signaling renewed interest in altcoins.
There was a sense that the market was quietly building power, especially if the Fed’s quantitative easing takes effect, which would help attract more capital. If this momentum were to continue, something exciting could follow.
Could this be the start of a new season?
Ethereum performance against Bitcoin (BTC) (ETH/BTC) has also shown improvement, with a potential breakout of a long-term downtrend that began in 2018.
Source: TradingView
If it breaks out, a 45.95% move would signal bullish momentum and could trigger a bullish move. broader altcoin rally.
Also, Ethereum’s growing ecosystem and growing institutional interest have made it an exciting time for the market. The energy around Ethereum (ETH) This seemed to be the spark that could ignite altcoins.
Final Thoughts:
- The Russell 2000 breakout and Total 2 ascending triangle suggest the market is primed for a risk-on rally, which could send altcoins higher.
- If ETH/BTC breaks its downtrend, this momentum could lead to a real altcoin surge, with Ethereum’s strength leading the way.
