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Ethereum finally surged after breaking through a critical resistance level that had kept the price at a moderate level since early August. The move changed market sentiment as many investors and analysts previously doubted ETH’s potential in the current cycle, expecting it to lag behind. However, Ethereum’s recent strength is beginning to reshape this outlook.
Prominent analyst and investor Ali Martinez recently shared information indicating that although Ethereum’s momentum is building, the long-awaited “Altseason” has not yet arrived.
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According to Martinez, at this stage of the cycle, Bitcoin typically outperforms Ethereum and other altcoins – a common pattern as BTC often leads market rallies. This dynamic could provide a strategic opportunity for investors looking to get into ETH and other altcoins before the broader market euphoria begins.
As Ethereum gains momentum, market participants are watching for further confirmations of its breakthrough, with many speculating that once Bitcoin’s lead cools, capital could flow more aggressively into altcoins.
Ethereum wakes up
Ethereum is making a remarkable comeback, jumping over 22% in just two days of strong bullish momentum. While this performance is impressive, key data highlights that Bitcoin remains ahead of the market, slightly eclipsing Ethereum’s gains. For savvy investors, this could provide a great opportunity to start accumulating Ethereum and selecting altcoins before they potentially rebound into the next phase of the cycle.
Ali Martinez, a leading analyst, recently shared a Glassnode chart revealing information about the “Bitcoin Altseason Indicator.” This tool compares net capital flows between Bitcoin and Ethereum, showing that even though Ethereum is rising, Bitcoin’s net capital change is currently outpacing it.
This trend confirms that Altseason, where altcoins outperform Bitcoin, has not yet started. Martinez points out that such dynamics are typical of this stage, with Bitcoin typically leading the initial rally and Ethereum following shortly after.
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Historically, Altseason often arrives once Bitcoin’s price momentum stabilizes, as capital flows from Bitcoin to high-potential altcoins. Many seasoned investors recognize this part of the cycle as the ideal time to accumulate strong ETH and altcoins at attractive prices before the broader market changes direction.
In the coming weeks, the relationship between the performance of BTC and ETH will be closely monitored, which could lead to a change in market sentiment and capital allocation.
Technical view of ETH
Ethereum recently broke critical resistance at $2,820, surpassing the 200-day exponential moving average (EMA) and touching the 200-day moving average (MA) at $2,955. This is a significant bullish move as ETH has been trading below these levels since early August, and the recovery of these indicators is seen as a positive signal for further gains.
For the bullish momentum to continue, ETH must break above and sustain above the daily MA at $2,955, thereby cementing this breakout as the basis for the next phase of the uptrend. However, some analysts suggest that a period of consolidation just below 200 MA could be beneficial, allowing ETH to gather strength for a more sustained rally. This pause could temper the growing euphoria and avoid excessive expansion in the short term.
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As market sentiment becomes more optimistic, many investors are watching this level closely. Holding above these critical indicators would give bulls more control, which could set Ethereum up for a more robust recovery as it targets new highs.
Featured image of Dall-E, chart by TradingView
