Altcoin Market Cap broke above $1.27T resistance, ending a four-year consolidation phase and signaling potential for extended sector-wide rally.
Ethereum is projected to hit new all-time highs, potentially triggering capital rotation into smaller altcoins during the next market phase.
Momentum indicators mirror pre-2021 altseason levels, suggesting altcoins could outperform Bitcoin and Ethereum in the cycle’s later stages.
Altcoin Market Cap has formally surpassed a multi-year bull trap forming an official break in a long-standing four-year battle, which implies that the macro trend in the whole cryptocurrency market could be changing.
Breakout Follows Years of Resistance
According to market observer Cas Abbé, despite several rallies throughout 2024, altcoins repeatedly failed to breach key resistance levels. Attempts to move past the $1.27 trillion threshold stalled at major technical barriers. The recent move marks a decisive breakout from an ascending triangle pattern formed since the 2021 highs.
https://twitter.com/cas_abbe/status/1955901726537490899
The breakout is supported by the 3-month Stoch RSI crossing bullishly from a low range, a setup similar to early 2021’s pre-altseason period. Historical patterns suggest such moves have preceded substantial market-wide rallies in altcoins.
Ethereum Expected to Lead the Next Phase
Abbé noted that Ethereum (ETH) could be the first major asset to set new all-time highs during this phase. This move may trigger a wave of capital rotation into smaller altcoins. A brief cooldown in ETH and altcoins is anticipated while Bitcoin consolidates and potentially trends higher.
Following this period, ETH is expected to resume its upward momentum. Abbé projects that altcoins will likely outperform both Bitcoin and Ethereum during the latter stages of the cycle. This would mirror past phases where smaller-cap assets experienced accelerated growth after large-cap breakouts.
Market Outlook Points to Extended Altseason
The clean breakout above the multi-year resistance has been interpreted by market analysts as a strong technical development for the sector. Abbé’s analysis suggests that the current cycle may not be a short-term rally but part of a broader multi-month uptrend.
With momentum indicators turning favorable and historical patterns aligning, the current setup resembles previous market phases that preceded rapid asset revaluations. If conditions hold, the next stage could see altcoins reaching performance levels not observed in several years.
The breakout in the Altcoin Market Cap marks the end of a prolonged consolidation period and could be the start of an extended altseason cycle, with Ethereum leading the initial charge before wider market participation.
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