Ethereum's (ETH) strong performance in Q3 has reignited hopes for a broader price increase in altcoins. The market is showing early signs of a shift, as ETH continues to outperform Bitcoin and trading volumes for altcoins surge.
Although Ethereum's price structure seems to be in an upward trend, whale activity indicates that some are starting to take profits.
This could create short-term resistance before the upward momentum returns. However, many analysts believe the groundwork for the altcoin season has been laid.
The strength of ETH rekindles optimism about the altcoin rally.
ETH has risen over 26% in Q3, outperforming Bitcoin's 9.95% gains. This performance gap is notable because in previous cycles, such strength from leading altcoins by market cap often signals the start of an altcoin bull run.
Analyst Carl Moon stated, 'The altcoin season may start from here,' as he pointed out trends from the past. He referred to previous periods when ETH led the entire altcoin market upward.
Adding to the bullish pattern is the cup and handle formation on the ETH chart. Analyst Batman views this as an important signal.
This pattern resembles the structure at the end of 2023 leading to a 100% increase. If the price breaks the neckline at $3,100, it could surge by 45% to the $3,800-$4,000 range.
It is noteworthy that ETH's resilience has created optimism across the crypto market. Traders are preparing for the flow of liquidity to move towards smaller market cap altcoins. This process could accelerate if ETH continues to show superior strength.
The movements of ETH whales reflect caution.
However, recent on-chain actions show that some whales are taking profits. Data from Lookonchain reveals that Trend Research sold 48,946 ETH worth $151 million.
This sale was used to repay a loan on Aave. The company accumulated over 184,000 ETH from February to June at an average price of $2,118 per ETH. After the sale transaction, they still hold 136,182 ETH, worth over $430 million.
At the same time, another whale has bet on ETH's short-term downtrend. Whale wallet 0x2258 has opened a short position using 18x leverage.
Notably, this Ethereum whale is currently facing an unrealized loss of up to $3.5 million. If the price of ETH surpasses $3,321, the position will be liquidated.
Record trading volume indicates that the altcoin season has begun.
Furthermore, a surge in trading volume in the crypto market has contributed to optimistic predictions. BitElite17 pointed out a record high volume candle on the total market cap chart.
Volume reached $119.91 billion — a new high in over three years.
"This volume candle represents the beginning of the altcoin season," the analyst wrote.
Such spikes in volume often signal that significant price action is about to occur. It reflects strong buying pressure from both institutions and individual investors, while also coinciding with an increase in altcoin dominance. Historical data shows that altcoin rallies typically follow phases of expansion led by volume.
SharpLink Gaming has also attracted attention with its recent accumulation activities. The company purchased 5,188 ETH at a cost of $15.76 million and added to its reserves. The total amount they hold has now surpassed 285,000 ETH, worth approximately $871 million. This indicates that smart money still sees value in Ethereum even amid the current volatility.
If the price of ETH maintains the breakout momentum and volume continues to rise, altcoins may soon enter a phase of strong growth.
The market structure supports an extended expansion of altcoins.
Meanwhile, the altcoin rally is confirmed by technical indicators in the market. The Total3 index (excluding Bitcoin and Ethereum) has surpassed a critical resistance level. According to analyst Jelle, altcoins are only about 18% away from their all-time high.
The chart shows a higher low pattern along with breakout candles, demonstrating that the upward momentum is clearly being built.
On the same chart, analyst CryptoELITES also noted the emergence of a rounded bottom breakout pattern. This structure often signals a prolonged expansion phase lasting several months.
Altcoins like Solana, Chainlink, and Avalanche are starting to attract attention. The timing of these breakouts coincides with the price strength of ETH. Historically, when ETH breaks out, altcoins often move shortly after.
