According to Cointelegraph, Ethereum's native token, Ether (ETH), has regained a significant technical level that has historically led to substantial price increases and initiated an 'altseason' across various market cycles over the past five years. This development has sparked optimism in the altcoin market, with potential implications for the broader cryptocurrency landscape.
The critical level in question is the mid-line, approximately $2,600, of the Gaussian Channel on the two-week chart. This moving average-based band tracks long-term momentum. In previous instances, such as in 2020-2021, ETH experienced a dramatic rise from $400 to over $4,800 after surpassing this mid-line. A similar pattern emerged in late 2023, with ETH climbing from below $1,500 to nearly $4,000 within a year. As of May 2025, the upper band of this channel is near $3,200, marking the next significant resistance level. A breakout above this could pave the way toward the previous cycle high of $4,100 by July.
Market analysts, including Moustache, suggest that an ETH price rally could further influence the broader altcoin market to rise in tandem. The combined market cap of altcoins, excluding Ethereum, surged by over 1,400% over a year following Ether's close above the channel's midline in July 2020. Similarly, the altcoin market cap increased by more than 200% a year after ETH's midline breakout in November 2023. The prospect of a 2025 altseason is bolstered by a repeating post-Bitcoin-halving pattern. In both 2017 and 2021, Bitcoin dominance dropped sharply around 400 days after the halving, triggering altcoin rallies. With the April 2024 halving nearing the same period, a similar decline could occur within the next 100 days. Analyst Wimar X anticipates the altcoin market cap could surge toward $15 trillion if this trend repeats.
However, there are cautionary signals regarding Ethereum's current position. Onchain data from Glassnode indicates that a significant portion of ETH's market cap, approximately $123 billion, is held by investors who purchased between $2,300 and $2,500. If ETH's price falls even slightly below this range, many holders could incur losses, potentially leading to panic selling and increased market pressure. While ETH demonstrates technical strength, its support remains fragile unless it can distance itself from this cost zone. This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making decisions.
