The crypto market is witnessing a vibrant and hopeful phase, especially with the resurgence of altcoins. Ethereum, with an impressive increase of over 23%, has risen to $3,430, marking a new breakout and creating strong excitement for other coins. This is the main driver causing altcoins to grow in unison, paving the way for a new season in the crypto market.
The capital shift: Altcoins are gradually surpassing Bitcoin
Not only Ethereum but also leading Layer-1 cryptocurrencies like XRP and Solana are experiencing strong growth, with increases of +32% and 10% respectively over the week. This is a signal that capital is gradually shifting from Bitcoin to altcoins, a notable trend in recent weeks. Projects like Cardano, Polkadot, and Chainlink are also attracting significant interest, not only from the community but also from major institutions, thanks to clearer regulatory guidelines.
The crypto market is currently receiving a strong boost from regulatory policies in the United States. The U.S. Congress is preparing to pass three important bills: the Genesis Act (stablecoin regulations), the Clarity Act (cryptocurrency classification), and the bill blocking the U.S. CBDC. Among them, the Genesis Act has already been passed by the Senate and is expected to be signed soon, bringing a wave of new confidence in major cryptocurrencies like Bitcoin and Ethereum.
The Altcoin season is slowly heating up again as CryptoQuant's MVRV index shows sustainable momentum for altcoins for the first time in over a year. Capital is gradually shifting from Bitcoin to Layer-1 coins like SUI (+36%), SEI (+41%), and ETH (+23.3%). Meanwhile, interest in meme coins is sharply declining, reflecting a distinct market trend shift.
Ethereum, in particular, has surpassed the $3,300 mark for the first time in five months, indicating that the strength of altcoins is gradually recovering. If Bitcoin continues to solidify at the $112,000 level, this could further boost altcoins. However, Bitcoin's strong volatility may reduce the liquidity of the overall market.
Growth prospects for Ethereum
The price of Ethereum is currently leading the recovery of altcoins, rising strongly by 9%. The breakthrough above the important resistance level of $2,800 has been particularly emphasized by analyst Michaël van de Poppe, considering this a strong signal indicating that the strength of altcoins is gradually recovering, with Ethereum at the forefront.
Currently, Ethereum is only 9.7% away from breaking out of a four-year accumulation triangle — a technical pattern full of potential that could trigger a strong price breakout in a parabolic manner.
Michaël van de Poppe believes Ethereum is on track to reach the $4,000 mark, asserting that any short-term correction of Ethereum will be a great opportunity for investors to enter the market, especially considering the strong fundamentals of this coin.
In addition to technical factors, another noteworthy driver comes from SharpLink Gaming, a public company that recently purchased 9,424.69 ETH worth about $32 million. This move reflects the growing interest from institutions in Ethereum, especially compared to Bitcoin.
Additionally, a potential "cup and handle" pattern is gradually forming on the ETH price chart, similar to the pattern that appeared at the end of 2023 before the price surged by 100%. If Ethereum surpasses the key resistance level of $3,100 (the neckline of the pattern), crypto analyst cryptosBatman predicts the price could rise to the range of $3,800 to $4,000.
A strong supporting factor for the bullish scenario is the unusual behavior of whales. A large Short position with 18x leverage is currently facing a loss of $3.5 million. If Ethereum surpasses $3,500, this could trigger a Short squeeze, driving prices even higher.
Moreover, attention from institutions is increasing as Ethereum gradually undermines Bitcoin's long-standing dominance in ETF funds. This interest from institutional investors could be the main driver for Ethereum's continued strong growth in the near future.
Bitcoin price prediction: A new peak will be established
Looking at Bitcoin, experts are also providing quite optimistic forecasts. Katie Stockton from Fairlead Strategies predicts Bitcoin will peak at $135,000 in the near future, entirely based on technical analysis. She points out the recent breakout of Bitcoin above $108,300 after a long accumulation period, further reinforcing her forecast for Q3.
Ray Wang, founder of Constellation Research, predicts that Bitcoin could reach $150,000 within the next six months, thanks to strong capital inflows from national investment funds and transparency in U.S. regulations. With interest rates expected to decline and the dollar weakening, this expert believes that national policy adoption is driving the increasing demand for Bitcoin.
Notably, the CEO of Bitwise, with the boldest perspective, aims for Bitcoin to reach $200,000 by the end of the year. He points out that the momentum from institutions has only just begun, with 125 public companies holding Bitcoin, and thousands of others may follow suit as cryptocurrency regulations are refined.
According to Altcoin Daily, 2025 will be a "turning point year" for the crypto market. With a strong influx of institutional capital, broken political barriers, and a robust recovery of altcoins, the cryptocurrency market seems ready for a strong growth cycle. Whether Bitcoin peaks at $135,000 or $200,000, one thing is clear: the biggest opportunities have yet to come.
The crypto market is currently in a promising phase, with altcoins like Ethereum breaking out and attracting the attention of institutional investors. Strong market movements, combined with favorable regulatory policies from the U.S. government, are creating a solid foundation for future growth. With positive forecasts from experts, 2025 promises to be a promising year for all cryptocurrency investors.