Ether’s push past $4,400 has traders buzzing again, with many eyeing a breakout that could finally kick off altcoin season. Historically, once Ethereum price rallies and holds its ground, money tends to flow quickly into the broader altcoin market, and the signs suggest we’re close.
Ethereum Price Action: Pressure Builds Near $4,500
At the time of writing, ETH price trades at $4,475 with a market cap of $540 billion, as per CoinMarketCap. Daily trading volume is up 6.5%, showing a surge in market activity.
On derivatives platforms, open interest has climbed to $30.3 billion, the highest since the 2021 bull run, meaning traders are loading up on leverage ahead of a potential move. There’s also been a slight uptick in ETH deposits to exchanges, hinting at light profit-taking, but it hasn’t dented the overall bullish momentum.
READ MORE: HYPE Price Eyes $90 as Hyperliquid TVL and Fees Hit ATHs
Technically, Ethereum price looks strong, as it’s sitting comfortably above both its 50-day MA ($4,453) and 200-day MA ($3,867). Pullbacks have been shallow, with buyers consistently stepping in on dips.
Ether price above key moving averages | Santiment
Crypto Rover summarized the stakes that once the ETH price breaks its 2021 all-time high, “altcoins will go parabolic.” That ATH sits near $4,870, less than 10% away from current levels, a breakout that could trigger the long-anticipated capital rotation into alts.
Traders Brace for ETH-Driven Altcoin Season
Popular analyst Michaël van de Poppe highlighted that the altcoin market capitalization is pressing against resistance and “another tap” could set off a massive breakout. His charts show altcoins coiling near multi-month highs, with the critical S/R flip suggesting continuation if bulls seize momentum.
The money flow dynamic supports this view. Van de Poppe reiterated that ETH typically rallies first, then stabilizes, allowing liquidity to rotate into “blue-chip” altcoins such as Optimism (OP), which he expects could double in the coming cycle.
Complementing this, the Altcoin Season Index sits at 55, according to Bitbull. While not yet overheated, this mid-range reading implies that altcoins still have room to run before the index flashes danger between 80–90. “A strong altcoin rally is coming,” Bitbull noted, “the question is just when exactly it will start.”
Broader flows also support the altcoin case. Bitcoin dominance slipped to 58.7% (-0.27 pts in 24h) while the Ethereum dominance chart rose to 13.5%, a 2.4% surge in the last 24 hours.
READ MORE: OKB Price Could Crash as Bitcoin Penguin Gains Momentum