Ethereum (ETH) has just broken above $4,200, fueling hopes that a new high could be just days away. The move comes amid a wave of bullishness sweeping across the altcoin market, with many experts believing that Bitcoin’s waning dominance is a sign of an explosive “altcoin season” – with Ethereum at the center.
Bitcoin Dominance Drops: A Green Light for Altcoins
Bitcoin dominance (BTC) – a measure of BTC’s share of the total cryptocurrency market capitalization – is currently hovering around 60.5% – 61%, a key multi-year support zone. If this ratio breaks below, the possibility of altcoins, especially Ethereum, to surge is very high.
Analysts point out that if BTC Dominance closes below this level on the 3-day chart, it would confirm an “altcoin season” – a historical period when ETH typically benefits the most.
Important resistance zone conquered
Ethereum has turned the $3,900-$4,100 area from strong resistance into solid support. This is an important technical foundation, helping ETH confidently move towards the old peak of $4,900. If the upward momentum is maintained, Ethereum can completely reach this mark in the next few days, instead of having to wait for a few weeks.
Beware of short-term pullbacks
The daily RSI is showing potential bearish divergence, warning of a possible slight correction. A pullback to lower support levels could occur before ETH gains momentum for a new strong rally.
The Macro Picture Still Favors Ethereum
The current rally is not only due to technical factors but also due to a favorable macro backdrop:
- Institutional capital is pouring into the cryptocurrency market.
- Widely deployed Layer 2 scaling solution, reducing fees and speeding up transactions.
- Ethereum's central position in DeFi and NFTs remains strong.
When you combine these factors with Bitcoin's weakness, Ethereum is on the verge of an explosion, and the $5,000 mark is no longer out of reach.
