Ethereum has surged past the $4,200 mark, sparking speculation that a new all-time high may be just days away. This move comes amid a growing bullish trend across the altcoin market, with experts noting that Bitcoin's declining dominance is a signal that altcoins may take the lead in the short term.
Bitcoin Dominance Decreases: Green Light for Altcoins
Bitcoin's market dominance (BTC Dominance), a measure of this cryptocurrency's market share in the total cryptocurrency market capitalization, is fluctuating between 60.5% and 61%. This area is seen as important support, and breaking below it could open opportunities for altcoins to outperform.
Analysts say that a decisive close below this level, especially on the three-day chart, will confirm that the 'altcoin season' is underway, a historically favorable scenario for Ethereum.
Important Resistance Area in View
ETH has now converted the main resistance zone between $3,900 and $4,100 into a support level. However, confirming this zone as a solid support will provide a technical foundation for Ethereum to challenge the nearest peak around $4,900. If the upward momentum remains strong, ETH could make this move in just a few days instead of weeks.
Monitor Short-Term Pullbacks
The daily Relative Strength Index (RSI) is showing signs of potential bearish divergence — a technical signal that can sometimes precede short-term corrections. A brief pullback to retest lower support levels is not out of the question before Ethereum attempts another strong rally.
The Bigger Picture
Ethereum's breakout is supported by a favorable macro backdrop for cryptocurrencies. Institutional interest is rising, layer 2 scaling solutions are being widely adopted, and Ethereum's role in decentralized finance (DeFi) and NFTs remains strong. Combined with Bitcoin's weakness, these factors suggest that the current rally may just be the start of a larger move.