Ethereum’s latest price strength may be more than just a standalone move. According to analysts, the second-largest cryptocurrency is laying the groundwork for a major altcoin surge, potentially delivering gains of up to 500% in the coming months.
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Ethereum’s Price Ascent Signals Risk-On Appetite
Michaël van de Poppe, co-founder of MN Trading Capital, believes Ethereum’s recent price action is the first clear signal of a shift in investor sentiment. In a post on X, he said he is “all-in” on altcoins and expects “200-500% to be made in the next 2-4 months.”
He linked the move in Ether to a broader risk-on environment. According to van de Poppe, this rally marks the beginning of altcoins playing catch-up after a long period of underperformance.
Ethereum has risen more than 6% in the past 24 hours, climbing to $3,854 at the time of publication, according to Nansen data.
Ethereum’s Outperformance Against Bitcoin Fuels Altcoin Bets
Adding to the bullish outlook, the ETH/BTC ratio has climbed 38.5% over the past 30 days, according to TradingView. Traders often watch this ratio to gauge whether altcoins are gaining strength relative to Bitcoin. A rising ratio typically suggests growing appetite for more speculative assets.
As Ethereum gains momentum, many traders see it as a leading indicator for the rest of the altcoin market. When ETH leads, historically, smaller-cap tokens tend to follow with outsized moves.
Ethereum’s Seasonality Raises Q3 Caution Flags
Despite the enthusiasm, some analysts are urging caution. Trader Ash Crypto pointed out that the third quarter has typically been a weak stretch for Ethereum, especially between August and September. “I would be cautiously bullish,” he said, referencing Ether’s seasonal performance.
According to CoinGlass data, Ethereum’s Q3 has delivered an average return of just 6.48% since 2016, making it the coin’s weakest quarter historically.
Ethereum’s Recent Rally Draws Mixed Reactions
Other market watchers are already questioning the sustainability of the recent pump. Trader Muneeb shared that he believes “this leg is done for now,” suggesting short-term exhaustion in Ethereum’s rally.
Still, some are betting against historical trends. Trader Cas Abbe argued that this time could be different, citing falling ETH exchange balances and rising institutional interest. “This is the perfect time for ETH to rekt the bears,” he posted on Thursday.
Meanwhile, a move toward $4,000 would threaten to liquidate over $800 million in ETH short positions, based on current market data. But if ETH continues to climb, many believe altcoins could soon follow with explosive gains.
At the time of writing, ETH is sitting at $3,896.81.
