Ethereum’s native token, Ether (ETH), is lighting up the crypto world once again, having reclaimed a crucial technical level that many believe could herald the onset of a new “altseason.” As of May 2025, ETH’s recent performance suggests a potential rally, echoing historical patterns where such recoveries have led to significant market-wide booms.
ETH Eyes New Peaks
Ethereum’s recent climb has seen it surpass the mid-line of the Gaussian Channel around the $2,600 mark on its two-week chart. This moving-average band is closely watched by traders for long-term momentum cues. Historically, ETH’s surge past this level has preceded eye-popping rallies; in 2020-2021, ETH’s price rocketed from $400 to over $4,800 after clearing this threshold. A similar scenario played out in late 2023, with ETH climbing from below $1,500 to nearly $4,000.
As we stand today, the upper band of this channel looms near $3,200—posing the next big challenge. Should ETH break through, it could very well set its sights on the previous cycle’s high of $4,100 by July 2025. Market analyst Moustache, among others, sees this as a potential launchpad for a broader altcoin rally, citing similar patterns seen in past cycles. This sentiment echoes the growing confidence among traders, as detailed in our recent coverage of Ethereum bulls showing interest at the $1.8K level.
The Altseason Conundrum
The notion of an “altseason”—a period marked by altcoins outperforming Bitcoin—gains credence with every ETH rally. In mid-2020, after a similar breakout, the altcoin market cap, excluding Ethereum, soared by over 1,400% within a year. Fast forward to 2023, and the pattern repeated itself, with the altcoin market witnessing a 200% increase.
Wimar X, a well-regarded analyst, suggests that the altcoin market cap could reach an astonishing $15 trillion if Bitcoin dominance trends mimic their historical post-halving decline. The latest Bitcoin halving occurred in April 2024, and if history is any guide, the next 100 days might see a sharp drop in Bitcoin’s market share—potentially igniting another altcoin surge. This potential shift in market dynamics is further explored in our analysis of Bitcoin DeFi’s projected user growth, which could influence Ethereum’s trajectory.
A Cautious Optimism
While the technical indicators paint a promising picture for ETH, caution is advised. A substantial chunk of ETH’s market cap—around $123 billion—is tied to investors who entered the market between $2,300 and $2,500, as revealed by onchain data from Glassnode. A dip below this range could push many holders into a loss, potentially triggering panic selling.
The road ahead for Ethereum and the broader altcoin market is paved with both opportunity and risk. As ETH edges closer to new heights, market participants are weighing the prospects of a repeat performance against the backdrop of a still-volatile crypto landscape. Whether this rally will sustain or face hurdles remains a question of considerable intrigue.
Source
This article is based on: Ethereum flashes ‘altseason’ signal as ETH price eyes $4.1K
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
