Ethusiasm for Ethereum may trigger a surge in alternative cryptocurrencies, according to industry experts' predictions.
Ethereum (ETH) has shown signs of a resurgence, potentially indicating a broader altcoin rebound in the crypto market. Bitcoin (BTC) has been relatively flat compared to ETH, trading in the six-figure area, while ETH has surpassed $4,000 this week, a level not seen since late 2021.
The ETH/BTC ratio is testing resistance after a long period of underperformance, which technical traders say is a prerequisite to broad-based altcoin leadership. Closing and holding above the $4K zone would encourage more rotation of capital from Bitcoin into Ethereum.
Negentropic, co-founders of Glassnode, suggest that the ETH rally is a "flywheel" that can start an altseason. They believe that this on-chain behavior supports the thesis of a potential altcoin rebound.
Macro Factors
Several macroeconomic factors are contributing to Ethereum's resurgence. Ethereum has seen significant institutional inflows through exchange-traded funds (ETFs), with total assets under management reaching approximately $19.2 billion in Q3 2025. This influx of capital has bolstered Ethereum's price, contributing to a broader crypto rally.
The U.S. government's exploration of including cryptocurrencies in retirement accounts and the passage of the "GENIUS Act" for stablecoin clarity have reduced regulatory uncertainty, increasing institutional confidence in Ethereum and other cryptocurrencies.
Cooling U.S. inflation and potential Federal Reserve interest rate cuts have created a favorable environment for risk assets like cryptocurrencies, boosting Ethereum's performance.
On-Chain Analytics and Market Performance
Price Performance: Ethereum has surged nearly 30% in recent weeks, reclaiming key resistances at $4,000 and $4,500. It is now challenging its all-time high of $4,891.70, with potential for a breakout toward $5,000.
Supply-Demand Dynamics: There is a significant net outflow of Ethereum from exchanges, with an average daily withdrawal of 40,000 ETH, indicating reduced sell-side pressure and increased demand. This dynamic supports a bullish outlook for Ethereum.
DeFi Participation: Ethereum's total value locked (TVL) in DeFi has passed $96.9 billion, approaching the peaks of 2021, further demonstrating investor confidence and activity.
On-Chain Positions: Around 2.82 million addresses have purchased 1.48 million ETH near the $3,835 resistance level, making it a crucial area for Ethereum's future price movements. Sustained prices above this level could lead to further advances.
Market veterans caution that macro factors (rate expectations, dollar strength) and liquidity conditions always matter in crypto markets. However, the sustained strength of Ethereum, as suggested by Negentropic, could be the multiplier that unlocks capital flows into the wider altcoin market.
Traders will want to see persistence, not just a single spike, before calling a full-blown altseason. Declining Bitcoin dominance/rising altseason index are important metrics for an altseason. An ETH/BTC breakout would signal Ethereum outperformance versus Bitcoin, a historical catalyst for alt rallies.
[1] Source: CoinDesk, Glassnode [2] Source: Messari [3] Source: IntoTheBlock [4] Source: Cointelegraph [5] Source: Decrypt
- The ETH/BTC ratio's resistance test, as a result of Ethereum's underperformance, is considered a precondition for broad-based altcoin leadership by technical traders.
- Negentropic, co-founders of Glassnode, believe the ETH rally could initiate an altseason due to on-chain behavior that supports a potential altcoin rebound.
- Institutional inflows into Ethereum through exchange-traded funds (ETFs) have significantly increased, with total assets under management reaching approximately $19.2 billion in Q3 2025.
- Cooling U.S. inflation and potential Federal Reserve interest rate cuts have created a favorable environment for cryptocurrencies, boosting Ethereum's performance.
- Ethereum has seen price surges of nearly 30% recently, reclaiming key resistances and challenging its all-time high at $4,891.70.
- There is a notable net outflow of Ethereum from exchanges, with an average daily withdrawal of 40,000 ETH, indicating reduced sell-side pressure and increased demand.
- The total value locked (TVL) in DeFi for Ethereum has surpassed $96.9 billion, nearing the 2021 peaks, highlighting investor confidence and activity.
- Market veterans advise monitoring macro factors and liquidity conditions for cryptocurrency markets. However, an ETH/BTC breakout signaling Ethereum outperformance versus Bitcoin could serve as a catalyst for alt rallies, reflecting the potential for a broader altcoin rebound, as supported by Negentropic.
