- Ethereum price remains a key determinant for the long projected altcoin season.
- Many consider an early start for altcoins, as showcased by the performance of top coins like Solana and XRP.
There is heightened speculation in the crypto market that the altcoin season is around the corner. These discussions come amid rising prices in some altcoins. Top altcoins like Solana (SOL) and XRP are taking charge, recording 11 to 90% gains over the past weekend. Amid this surge, Bitcoin (BTC) and Ethereum (ETH) traded sideways, further igniting discussions about whether it is the altcoin season.
Expected Timeline for The Altcoin Season
While the price trend from the top cryptocurrencies hints at the start of the altcoin season, the real rally has yet to start. Altcoins have historically done better during consolidation periods following major rallies in BTC and ETH as profits shift into small-cap coins.
According to QCP Capital, Bitcoin’s dominance is now around 60%. However, this value would have to go below 58% to signal the beginning of an altcoin season. The QCP report also noted that Solana is holding up to the crucial resistance of $240 after seeing a 17% gain over the weekend. QCP analysts claimed that the Donald Trump administration’s pro-crypto stance has further ignited the frenzy for an upcoming altcoin season.
They added that investors may hesitate to switch to altcoins, given that Bitcoin is nearing the 100,000 milestone. Still, the altcoin season could fully kick off in the next few months. This sentiment is hinged on the potential introduction of pro-crypto policies from the Trump administration and more interest rate cuts.
BTC maintains robust support, driven by institutional interest, despite outflows from spot Bitcoin ETFs last Thursday and Friday. Moreover, CNF reported that top firms like MicroStrategy have continued with massive Bitcoin purchases even at $90,000 levels.
Ethereum’s Influence In The Altcoin Season
It is important to note that Ethereum is the world’s biggest altcoin, with a market capitalization currently at $375 billion. As a result, the altcoin rally would not have been complete without the ETH price spike. While the altcoin market has produced incredible returns, price gains for ETH, the world’s biggest altcoin, remain below expectations.
Ethereum has retraced nearly 10% since hitting a high of $3,444 in early November. As of press time, it has rebounded slightly by 0.3% after finding firm support at $3,100.
Onchain crypto analyst Ali Martinez highlighted a strong demand zone at $3,000, with 2.82 million addresses accumulating more than 6.14 million ETH. This will provide substantial support for an Ethereum rebound so that it can contribute to the altcoin season.
Furthermore, the Ethereum Logarithmic regression model predicts a $9,200 price rally at the band’s top by May 2025. If the surge continues as expected, it can reach $17,600. It means that analysts expect an altcoin season to fully commence in the coming year.
