Weak Altcoin Rally Signals Early Stage; ETH May Ignite Surge
Altcoin rally performance in the current cycle is the weakest in years, according to CryptoQuant data. A comparison with Bitcoin and top-20 altcoins shows a muted mid-to-small-cap token response. The site’s analysis highlights two prior altcoin rally phases: early 2024 and late 2024 to early 2025. Both phases featured stronger altcoin gains, but Bitcoin retained dominance.
Market observers say the present altseason stage remains undeveloped. Swissblock’s Altcoin Vector report points to Ethereum’s recent strength as a potential catalyst. The ETH/BTC pair is up about 75% since May lows and just broke out of a downtrend. If ETH/BTC clears the 0.035 resistance level, a broader altcoin rally could follow. Traders need patience as rotation from Bitcoin to altcoins may take time.
A crypto analyst argues that a full market cycle requires a true altseason. While Bitcoin commands most gains now, altcoins could deliver surprises once momentum shifts. For traders, monitoring ETH/BTC and Bitcoin dominance indicators will be key. A successful breakout may signal a bullish phase for small and mid-cap tokens.
Bullish
Despite current weakness in the altcoin rally, multiple indicators point to a potential turnaround. Historically, significant ETH/BTC breakouts have preceded strong altseason phases. Swissblock’s data shows ETH/BTC is up 75% since May and has broken its downtrend. If it clears the 0.035 resistance, wider money flow into mid-to-small-cap tokens could follow. Traders should watch Bitcoin dominance and ETH/BTC closely. A decisive breakout would likely trigger renewed bullish momentum across altcoins, suggesting a medium-term bullish outlook for the market.