Ethereum (ETH) has turned the cryptocurrency market upside down with a sharp jump of 20% in the last 24 hours, raising the price to $2323.54 and briefly touching a daily high of $2486.01. The trading volume of Ethereum also surged, increasing by 150% to a colossal $51.56 billion.
ETH is reclaiming key support levels
According to data, ETH has convincingly regained its 20-day EMA at $1869 and is now oscillating near the 50-day EMA at $1883, both of which may serve as strong support zones in the near term.
This sudden rise has led to speculation about a broader rally in the altcoin sector.
Historically, aggressive upward trends in Ethereum have often preceded altcoin booms. When ETH dominance rises and ETH/USD breaks key resistances, capital is often redistributed into riskier altcoins. This pattern was evident in both the 2017 and 2021 cycles.
Exchange flows paint a mixed picture in the short term
According to crypto analyst Boris Vest, the inflow of ETH to exchanges (on average) has increased since the end of 2024, indicating increased selling pressure—a short-term bearish indicator. This reflects the phase of 2022–2023 when ETH sent to exchanges preceded sell-offs.
However, the narrative is changing due to the average outflow of funds from exchanges, which has been steadily increasing since October 2023. This is a classic sign of accumulation by long-term holders who are withdrawing ETH from exchanges, demonstrating deep confidence in the future of the asset.
Is an altcoin market rally on the horizon?
When looking at the broader altcoin market, the TOTAL2 chart (total market capitalization of cryptocurrencies excluding BTC) confirms this growing optimism. The market capitalization has exceeded $1.16 trillion, with resistance at the 1.0 Fibonacci level around $1.23 trillion.
In addition, key targets lie at the Fibonacci level of 1.618, amounting to $1.38 trillion, and at the 2.618 extension level around $1.61 trillion—both historically reliable markers of a bullish altcoin trend.
The Relative Strength Index (RSI) for the altcoin sector currently stands at 75.94. This indicator suggests overbought conditions, which typically precede pullbacks. However, as seen from past euphoric rallies, the RSI can remain elevated for extended periods. The MACD indicator for TOTAL2 shows a bullish crossover with rising histogram bars. This pattern confirms that the upward momentum in the altcoin market currently remains unchanged.