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ethereum finally rose after breaking a critical resistance level that had kept the price subdued since early August. This move has changed market sentiment, as many investors and analysts previously doubted eth's potential in the current cycle, expecting it to lag behind. However, ethereum's recent strength is beginning to reshape these prospects.
Prominent analyst and investor Ali Martinez recently shared insights indicating that while ethereum momentum is building, the long-awaited “Altseason” is not yet here.
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According to Martínez, at this stage of the cycle bitcoin typically outperforms ethereum and other altcoins, a common pattern as btc often leads market rallies. This dynamic could provide a strategic opportunity for investors looking to get into eth and other altcoins before the broader market euphoria begins.
As ethereum gains ground, market participants are watching for further confirmation of its breakout, with many speculating that once bitcoin's lead cools, capital may flow more aggressively into altcoins.
ethereum waking up
ethereum is making a remarkable recovery, rising over 22% in just two days of strong bullish momentum. While this performance is impressive, key data highlights that bitcoin continues to lead the market, slightly eclipsing ethereum's gains. For savvy investors, this could present an excellent opportunity to start accumulating ethereum and picking up altcoins before they potentially rally in the next phase of the cycle.
Ali Martínez, a prominent analyst, x.com/ali_charts/status/1854623178523328901/photo/1″ target=”_blank” rel=”nofollow”>recently shared a Glassnode chart revealing insights about the “bitcoin Altseason Indicator”. This tool compares net capital flows between bitcoin and ethereum and shows that while ethereum is rising, bitcoin's net capital change is currently outpacing it.
This trend confirms that Altseason, where altcoins outperform bitcoin, has not yet started. Martínez points out that this dynamic is typical of this stage, where bitcoin usually leads the initial rally and ethereum follows shortly after.
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Historically, Altseason typically arrives once bitcoin price momentum stabilizes, as capital flows out of bitcoin and into high-potential altcoins. Many experienced investors recognize this part of the cycle as an ideal time to accumulate eth and strong altcoins at attractive prices before the broader market changes its focus.
In the coming weeks, the relationship between the performance of btc and eth will be closely monitored, which could lead to a change in market sentiment and capital allocation.
eth technical view
ethereum recently broke through a critical resistance of $2,820, surpassing the 200-day exponential moving average (EMA) and touching the 200-day moving average (MA) at $2,955. This marks a significant bullish move as eth has been trading below these levels since early August, and recovering these indicators is considered a positive sign for further gains.
For the bullish momentum to continue, eth must overcome and stay above the daily MA at $2,955, solidifying this breakout as the foundation for the next phase of the uptrend. However, some analysts suggest that a period of consolidation just below the 200 MA could be beneficial, allowing eth to gather strength for a more sustained rally. This pause could temper the growing euphoria and prevent excessive extension in the short term.
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As market sentiment becomes increasingly optimistic, many investors are closely monitoring this level. Holding above these critical indicators would give the bulls more control, potentially setting ethereum up for a stronger recovery as it aims for new highs.
Featured image of Dall-E, TradingView chart
