Ethereum surpasses the $4,000 mark: Is the Altcoin season coming?

Ethereum (ETH) has for the first time exceeded the 4,000 USD mark in the past eight months, reaching a daily high of 4,170 USD. This important psychological milestone puts ETH about 900 USD away from its all-time high of 4,867 USD, set in November 2021.

The Push from Institutions and ETFs

ETH has witnessed a strong price surge, increasing by over 44.5% in the past month. In the past week, this asset has risen by 7.9% and 2.6% in the last 24 hours. Since April 21, ETH has increased by about 90% compared to Bitcoin.

There are two main factors that have driven the recent price increase: the rise in accumulation by institutions and strong inflows into spot Ethereum ETFs.

The number of companies actively participating in purchasing billions of dollars worth of ETH is increasing. BitMine leads with over 833,000 ETH ( equivalent to 3.3 billion USD), followed by SharpLink with nearly 522,000 ETH ( around 2.1 billion USD). Geoffrey Kendrick from Standard Chartered believes that these companies are "just getting started" and could hold up to 10% of the total ETH in the future.

Ethereum spot ETFs in the U.S. have recorded significant net inflows, even surpassing Bitcoin ETFs in recent weeks. In just the past month, these products have attracted nearly 5 billion USD. They have played an important role in the total net inflow of 9.4 billion USD since trading began in July 2024.

Market observer Cas Abbé highlighted a large transaction in which an investor purchased 10,400 ETH, worth 40.5 million USD, through an OTC desk. This was followed by another notable move from Fundamental Global Inc., which filed to raise 5 billion USD to acquire more ETH, further reinforcing the signal of strong demand from institutions.

"$ETH continues to outperform $BTC. Just today, a whale purchased 10,400 ETH worth 40.5 million USD through an OTC transaction. Yesterday, Fundamental Global Inc filed a 5 billion USD offering to acquire more ETH. It seems that ETH's resistance level of 4,000 USD won't last long."

The decline in Bitcoin's dominance as altcoin season approaches

The growth of ETH coincides with a significant decrease in Bitcoin's dominance rate, with Bitcoin's share of the total cryptocurrency market dropping to around 59%. This shift indicates a capital rotation from Bitcoin to altcoins, including Ethereum.

Trader and renowned analyst Rekt Capital pointed out on platform X that "the dominance of Ethereum has reached around 50-60% in its macro uptrend," comparing it to the previous bull run in 2021.

He predicts that Bitcoin's dominance may temporarily recover, but also emphasizes that it will ultimately "shift to a long-term technical downtrend." This analysis indicates the potential for a broader "altcoin season," where altcoins will record significant growth compared to Bitcoin.

Mr. Teacher