Ethereum’s 25% surge to $3,472, its highest price in five months, has spurred experts to start saying altcoin season is starting again. As the Ethereum pump spreads across the market, Layer-1s like Solana and XRP are up by more than5%, while high-momentum smaller chains like SEI (+41%) and SUI (+36%) also keep their explosive run.
Behind this rotation is institutional presence and positive regulatory momentum in Washington, which means the market might be headed for a sustained bull run in digital assets; especially among alts with substance.
Anatomy of a Rotation: From Bitcoin to Layer-1s
Bitcoin has been in consolidation above $118,000 and that has created a perfect environment for altcoin outperformance. MarketOnChain says this has allowed capital that was locked into Bitcoin to rotate into other networks. CryptoQuant’s MVRV indicator has been flashing altcoin momentum for multiple weeks.
CoinMarketCap’s Altcoin Season Index, which measures altcoin strength against BTC over the past 90 days, is at 39/100, which means the market is seeing a shift away from BTC dominance.
Ethereum’s break above $3k is not just a technical level but confirmation of DeFi and NFT activity picking up. Santiment says the number of non-empty Ethereum wallets has crossed 152 million and social mentions are at a multi-month high. With on-chain and sentiment metrics green, retail and institutional players are looking at Ethereum as a profit central with renewed interest.
Why Regulation Could Be the Next Catalyst
This rally comes at a time of policy alignment. Washington is passing the GENIUS Act on stablecoins, the Clarity Act on token classification and the Anti-CBDC Surveillance Act. These bills promise to will bring legal clarity; a missing piece for large-scale investment. Institutional allocators often cite regulatory certainty as the top hurdle and a positive Bill passage is already affecting speculative flows into Ethereum and other major alts.
Expert Views: $4K Ethereum, $200K Bitcoin
Experts are confirming the charts. Michaël van de Poppe says Ethereum is going to $4,000 and advises to buy on dips.
Katie Stockton of Fairlead has BTC at $135,000 for Q3, Ray Wang of Constellation Research predicts Bitcoin to $150,000 due to institutional inflows while Hunter Horsley of Bitwise predicts BTC at $200,000 by year-end as regulation clarity kicks in.
These predictions paint a very bullish macro-crypto picture withstable BTC, strong Ethereum and altcoins growth, as well as a 2025 that could be as good or better than previous cycles.
The biggest risk to the Altcoin Season is a sharp BTC move. An unexpected bull could refill the coffers and drain altcoin liquidity. Or if new crypto bills stall or US regulators issue surprise memos, the enthusiasm could falter. But current alignment of market structure, on-chain signals and policy momentum makes this a good bet.
Conclusion
Based on the latest research, altcoin season is early, driven by Ethereum’s breakout, policy momentum in Washington and institutional appetite for Layer-1s. While Bitcoin’s steady plateau is the backdrop, success in this cycle could belong to alts; especially those with strong use cases and dev activity.
Ethereum’s rally and expert calls for $4,000, means the market could be seeing the start of a cycle where alts take the lead in crypto.
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Summary
Ethereum’s 25% to $3,472 has triggered what appears to be a new altcoin season, with Layer-1s like Solana, XRP, SEI and SUI gaining momentum. On-chain metrics and sentiment indicators from MVRV to wallet growth show capital flowing out of Bitcoin. Analysts are calling for Ethereum to $4,000 and Bitcoin to $135K-$200K in 2025.
FAQs
What is altcoin season?
Altcoin season is when most non-Bitcoin cryptocurrencies outperform BTC over a period of time; now indicated by several metrics and price trends.
Why Ethereum?
Ethereum broke to $3,472 with institutional interest, network growth and regulatory clarity behind it, making it the amplifier of this altcoin season.
Is Bitcoin still important?
Yes. Bitcoin’s consolidation above $118K is a base for capital to rotate into alts without panic.
What could stop this?
A sudden BTC move, legislative delays or macro shocks could shift capital back out of alts and end the season.
Glossary
Altcoin Season – When most non-Bitcoin cryptocurrencies outperform BTC.
MVRV – Market-to-realized value ratio to measure valuation and sentiment.
Layer-1 – Blockchain architectures like Ethereum, Solana, SEI, SUI.
GENIUS/Clarity Acts – US bills defining stablecoins and crypto asset classes.
CD20/CD5 Index – Crypto indices for broader altcoin vs top 5 asset performance.
Sources
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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