Ethereum Analyst Sees Altseason Potential As BTS Is Still Outpacing ETH – Time To Buy Altcoins?

Ethereum has finally surged after breaking through a critical resistance level that had kept the price subdued since early August. This move has shifted market sentiment

After encountering resistance for several weeks, Ethereum has finally shown signs of life with a strong two-day rally. This move has sparked optimism among investors, especially considering how slowly ETH has been rising compared to BTC and other altcoins.

Now, as ETH gains momentum, prominent analysts are sharing their perspectives on the market. One key topic being discussed is the potential for an “Altseason” and how to identify its early stages.

According to popular analyst and investor Ali Martinez, the much-anticipated Altseason hasn’t arrived just yet. This stage of the crypto market cycle is typically characterized by altcoins outperforming both Bitcoin and Ethereum in a scenario where capital flows more aggressively into altcoins.

Usually, Bitcoin outperforms other coins in the initial stages of a bull market, with Ethereum lagging behind BTC but outpacing other altcoins. This dynamic presents an opportunity for investors to enter ETH and select altcoins before the broader market fully shifts its attention.

As Ethereum continues to gain steam, many investors are watching for further confirmation of this breakout and anticipating a shift in capital flow direction.

While BTC is still leading the market, this could pave the way for a new phase of altcoin appreciation. As Bitcoin’s price momentum cools, capital may flow more aggressively into altcoins.

Ethereum Waking Up: Key Takeaways

Making a remarkable comeback, Ethereum surged over 22% in just two days of strong upward momentum. Despite this impressive performance, key data highlights that Bitcoin is still leading the market, slightly overshadowing Ethereum’s gains.

For savvy investors, this could present a prime opportunity to start accumulating Ethereum and select altcoins before they potentially rally in the next phase of the cycle.

Prominent analyst Ali Martinez shared a Glassnode chart that provides valuable insight into the dynamics of Bitcoin and altcoin price performance. This chart features the “Bitcoin Altseason Indicator,” which compares net capital flows between Bitcoin and Ethereum.

According to this indicator, while Ethereum is on the rise, Bitcoin’s net capital change is currently outpacing it. This trend confirms that Altseason hasn’t begun yet.

As Martinez points out, such dynamics are typical for this stage, with Bitcoin usually leading the initial rally and Ethereum following shortly after. Historically, Altseason often arrives once Bitcoin’s price momentum stabilizes.

At that point, capital tends to flow from Bitcoin into high-potential altcoins. Many seasoned investors recognize this part of the cycle as an ideal time to accumulate ETH and strong altcoins at attractive prices before the broader market shifts its focus.

In the coming weeks, the relationship between BTC and ETH performance will be closely watched, potentially setting up a shift in market sentiment and capital distribution.

ETH Technical View

After encountering resistance at several crucial levels, Ethereum finally managed to break through and close above the 200 MA on the daily timeframe. This bullish development occurred on Friday, following a two-day rally that saw ETH price surging past critical moving averages and setting up for further gains.

After breaking below the 200 EMA in early August, ETH price has been trading below both the 200 EMA and 200 MA since then. Now, as ETH trades above both moving averages on the daily chart, bulls are attempting to gain control and push the price higher.

On Friday, ETH price surged by over 22% in two days, reaching a high of $2,955. This level marks the 200-day moving average (MA) on the dailyの時間枠チャート. After failing to break above this moving average several times since early August, ETH price finally managed to close above it on Friday.

This bullish development signals a potential shift in momentum and could pave the way for further gains in the coming days or weeks. However, some analysts believe that a period of consolidation just below the 200 MA could be beneficial for ETH price in the short term.

This would allow ETH to gather strength for a more sustained rally and avoid overextension, especially considering how quickly it rose to this level without much correction or consolidation.

As the market sentiment turns increasingly optimistic with ETH price breaking above key moving averages, many investors are watching this level closely, hoping for a sustained breakout that could propel ETH price to new highs.