ETH surges strongly, altcoin trading volume skyrockets! As of now, the ETH price is $3423, with an increase of approximately 34.55% over the past ten days, demonstrating strong performance, which not only completely breaks the market's heavy selling pressure narrative but also brings the ultimate dawn to the ETH guardians.
Back at the beginning of the year, ETH once became the leading pioneer of altcoin declines—almost halving in a short period, dragging the entire altcoin market down with it. The market was filled with various bearish voices: ETH has no future, ETH will go to three digits, ETH has too much selling pressure, ETH will break $4000 in 2075, and a series of bearish statements........ However, as time passed, ETH completely recovered its losses and strongly countered all the pessimistic views with its performance.
Analysis of the underlying logic behind this surge
1. Overall market fundamentals are sufficiently favorable
(With tariff adjustments and the easing of the Israel-Iran conflict, there are no long-term negative factors interfering with the market)
2. Expectations of interest rate cuts are approaching
(Liquidity easing signals are strengthening, with increased expectations for capital inflows)
3. Positive signals are being released from the policy side
(Trump's team has shown an open attitude toward the crypto market, reducing policy uncertainty)
4. Institutional and whale confidence is returning and starting to increase holdings
(Top funds are beginning to consistently increase their holdings, leading to a stable increase in market concentration)
5. BTC profit-taking is spilling over
(High-level profit funds are flowing out, with ETH perfectly absorbing them. Chart 1 shows BTC's 24-hour trading volume decreased by 11.9%, while other altcoins saw increases of over 30%)
We have previously mentioned that no single favorable factor is sufficient to support a long-term crazy rise; only a convergence of multiple favorable factors can give rise to such a strong market. And these past few days, I wonder if anyone has felt that the altcoin season seems to have truly returned, with BTC's market share and trading volume declining, replaced by a continuous expansion of capital inflows led by ETH, as market funds are pulling one by one, resulting in BTC struggling to recover while ETH rebounds immediately and continues to strengthen, which is a typical sign of sufficient buying pressure.
P.S.: A high market share of Bitcoin indicates that funds are concentrated in Bitcoin. The lower the market share, the more altcoin funds there are, which is also a very obvious indicator of a bull market.
For short-term speculators, the opportunity has arrived, and attention should now be directed toward altcoins led by ETH, but remember not to blindly chase high prices.
