Ethereum (ETH) Rallies to Five-Month High of $3,600, Reigniting Altcoin Season Speculation

Ethereum (ETH) has surged to a five-month high, briefly crossing the $3,600 mark on Thursday – an 8% weekly gain – before paring gains to sit around $3,573 currently

Ethereum (ETH) price analysis reveals a surge to a five-month high on Thursday, briefly crossing the $3,600 mark. The second-largest cryptocurrency enjoyed an 8% weekly gain, outperforming Bitcoin and sparking talk of an altcoin season.

However, large token transfers by Ethereum co-founder Jeffrey Wilcke and the Ethereum Foundation have raised concerns, casting a shadow over the otherwise bullish sentiment.

Chart: Binance

A glance at the Ethereum Rainbow Chart, which tracks historical price data across various zones, shows ETH currently positioned in the “Steady” (yellow) zone, indicating moderate growth potential.

For ETH to transition into higher valuation zones, such as “HODL!” (orange) or “Maximum Bubble Territory” (red), it would need to breach the $4,000 mark convincingly.

The recent rally has seen Ethereum lag behind other major cryptocurrencies like Bitcoin and Solana, which have recorded returns of 121% year-to-date and 135%, respectively, compared to ETH’s 55%.

This disparity has left investors on edge, especially as high-profile Ethereum-related wallets are showing significant outflows.

BRN lead analyst Valentin Fournier observes that while the momentum is relatively bullish, there is no positive news currently affecting Ethereum and he anticipates it will underperform Bitcoin in the short term.

“This weekly +6% despite a general correction is very welcomed but does not compensate the massive underperformance since the beginning of the year. BTC/ETH is up 43.70% YTD and down less than 1% over the month,” the analyst noted.

Co-founder Jeffrey Wilcke recently transferred 20,000 ETH (worth $72 million) to Kraken, marking his fourth major transaction to the exchange in 2024, SpotOnChain reported on Thursday, citing Arkham Intelligence data.

This brings his total ETH moved this year to over $147 million, though Wilcke still holds some 106,000 ETH.

These transfers follow similar moves by the Ethereum Foundation, which shifted 35,000 ETH ($94 million) in August. Such actions have sparked speculation about potential insider profit-taking, despite public assurances that the sales aim to support Ethereum’s ecosystem.

Vitalik Buterin, another co-founder, has also been under the scanner, with his wallets showing a negative net flow of 6,000 ETH this year. Buterin has clarified that his transactions were for philanthropic and ecosystem support purposes, rather than personal profit.