Key takeaways
Ethereum’s breakout and a 41% surge in altcoin market cap is a sign of a possible shift in momentum. While it’s not officially altseason yet, the signs are clearly pointing in that direction.
After weeks of dominance, Bitcoin [BTC] may finally be sharing the spotlight. Ethereum [ETH] has notched four consecutive weeks of gains against BTC, giving the top crypto a run for its money.
Meanwhile, Bitcoin’s dominance [BTC.D] is slipping, and altcoin market cap has soared massively since June – Now at $1.45 trillion. Capital rotation into alts also began as early as July.
With the altcoin season index nearing a tipping point, the signs of a shift may be impossible to ignore right now.
ETH breaks out against BTC as dominance shifts
Source: TradingView
After months of consolidation, Ethereum has finally snapped out of it, logging 26.93% weekly gains against Bitcoin.
In fact, at the time of writing, the ETH/BTC chart was flashing four consecutive green weekly candles, with the latest breakout pushing the pair to 0.03153.
Source: TradingView
This sharp rally coincided with a consistent drop in Bitcoin’s market dominance, with the same falling to 61.05% – Its lowest point in over two months.
As capital rotates away from BTC and into altcoins, Ethereum’s strength may be just the beginning of a broader market narrative.
Ethereum as a harbinger of altseason
The altcoin market is heating up and fast!
From a June low of $1.06 trillion to around $1.5 trillion at press time, TOTAL2 (crypto total market cap excluding BTC) soared by more than 41%, with Ethereum sitting comfortably at the helm. Such a sharp rise is indicative of growing confidence that an altseason may be underway.
Source: TradingView
Ethereum’s outsized performance, both in price and dominance, has been acting as a catalyst, drawing capital away from Bitcoin and into the broader altcoin ecosystem.
Altseason isn’t official yet – but we see the signs
Coinglass’s altcoin season index was at 51 at press time, tipping past the halfway mark.
While it hasn’t crossed the official threshold of 75 yet, it did rise significantly in recent weeks.
Source: Coinglass
According to Glassnode, capital started flowing into altcoins in early July, with short-term averages rising above long-term ones for the first time in months.
Source: Glassnode
This shift seemed to line up with Ethereum’s breakout too.
It may not be a full-blown altseason yet, but the conditions are starting to look familiar. And, investors are beginning to take notice too.
