Recently, speculation about the potential start of altcoin season has increased among analysts due to the increase in total altcoin market cap. In the cryptocurrency world, such speculation is often triggered by significant price movements of certain crypto assets and a general wave of optimism in the market. At the center of these discussions is Ethereum, whose price has increased significantly. As the market’s second largest cryptocurrency, Ethereum has a significant impact on the health and direction of the overall crypto market. Analysts such as Michaël van de Poppe, in particular, are keeping a close eye on altcoins following Ethereum’s impressive 27% gain last week.
The total market cap of altcoins currently stands at approximately $1.16 trillion, representing a 15% increase over the past two weeks. This rise is approaching resistance levels observed in mid-March, when market capitalization exceeded $1.2 trillion. These resistance levels are considered an important psychological barrier for investors and can play a critical role in determining future movements of the market. Analysts state that exceeding these levels could mean the official start of the altcoin season and trigger a broader bull market.
Michaël van de Poppe examined the potential impact of the recent approval of the Ethereum ETF (Exchange-Traded Fund) on cryptocurrencies in his YouTube video analysis. Van de Poppe notes that such approval could be a significant impetus for altcoins in the current bull market. Approval of an ETF could make it easier for institutional investors to access Ethereum and bring a new wave of liquidity to the market.
The Road to Ascension
Looking at historical patterns, altcoin seasons tend to follow a different liquidity flow pattern. It usually occurs in several stages before hitting the market.
Bitcoin Run: In this phase, the developing bull market leads to Bitcoin potentially reaching new all-time highs. Simultaneously, Bitcoin dominance is starting to decline, indicating a potential shift towards altcoins.
Ethereum’s Return: As Bitcoin corrects, Ethereum often emerges as a frontrunner, posting impressive gains. Ethereum’s uptrend may coincide with a consolidation phase for Bitcoin.
Large Caps Prominence: In this phase, investor interest and capital flow shifts towards established altcoins, resulting in significant price appreciation.
Mid/Low Cap Prominence: The final phase witnesses explosive growth and increased volatility in mid and low cap altcoins with promising growth potential.
When Will We See Altcoin Season?
Van de Poppe’s analysis suggests that the recent approval of the Ethereum ETF could catalyze the altcoin season, in line with the historical pattern observed in the cryptocurrency market. As Ethereum gains momentum and investor confidence increases, it could lead to broader appreciation in the crypto market.
The approval of the Ethereum ETF is seen as a catalyst for the potential altcoin season. However, due to the listing process, the full impact may not be immediate and may take months to occur.
Looking to the Future
The altcoin season may go through a consolidation phase before gaining full momentum. After ETH ETF, many other altcoins are in line to try their luck, including XRP, Litecoin, Solana and many more. The market appears to be bullish on adopting ETFs like never before.
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