When Bitcoin breaks through $120,000 and dominates trending searches, seasoned players in the crypto market are watching another signal — the 'cycle engine' that sparked a hundredfold frenzy in 2017 and 2021 is quietly awakening. Indeed, Ethereum's recent performance is scripting 'history repeating itself' on the public screen.
The market does not lie: Ethereum is rewriting the cycle script.
In the past month, ETH's price has broken through $4,300, reaching a new high since the end of 2021. Even more striking is that it surged 22% in just seven days, far outpacing Bitcoin. Most importantly, this breakthrough past the $4,000 resistance level is not a false move — trading volume has exploded, and institutional funds are pouring in; the technical indicators have given a clear signal: if the momentum continues, the targets of $6,000-$8,000 are not far off.
Many people think this is just 'following Bitcoin’s rise,' but long-time fans know that this time, Ethereum's rise comes with 'turbocharging.'
Four hard-driving forces make this rise different.
1. Wall Street's real money is entering: Spot ETF is a key driver.
The biggest variable in 2025 will be the official launch of the U.S. spot ETH ETF. Giants like BlackRock, Fidelity, and Grayscale have already seen over $120 billion in capital inflows in just a few months. More importantly, it's not just retail investors buying ETH; pension funds, wealth management institutions, and even corporate finance departments are increasing their positions — this is not speculation; they are genuinely treating ETH as 'digital asset allocation.'
2. Stablecoins have a stabilizing effect, making Ethereum the biggest winner.
After the passage of the U.S. (GENIUS Act), stablecoins finally have a clear regulatory framework. The vast majority of USDT and USDC are issued on Ethereum; as stablecoin adoption increases, the demand for ETH's gas fees rises, solidifying its status as the 'global settlement layer.' In simple terms, the more frequently global digital funds flow, the more Ethereum benefits.
3. Public companies are quietly hoarding ETH: from 'speculating on coins' to 'earning assets.'
Reuters data illustrates the issue well: By the end of 2024, companies will hold only 116,000 ETH, but by mid-2025, it will directly skyrocket to nearly 1 million ETH, worth over $3.5 billion. These companies are not just hoarding for price increases but are also staking ETH to earn a stable 3%-4% annual yield — making ETH an 'asset that lays eggs,' capable of competing directly with traditional financial products.
4. Macroeconomic tailwinds: Interest rate cut expectations ignite enthusiasm for risk assets.
The Federal Reserve hinted that it might cut interest rates this year, which for cryptocurrencies is a signal of 'opening the floodgates.' With lower interest rates, assets with stable yields like ETH staking become extremely attractive compared to bonds and savings accounts. Funds always need a place to go, and ETH is perfectly positioned to catch this wave of liquidity.
Cycle code: Bitcoin sets the stage, Ethereum takes the lead, and altcoins wrap it up.
Old players understand this rhythm:
Phase one: Bitcoin rises first, attracting mainstream attention and institutional funds (has happened, BTC broke $120,000);
Phase two: Ethereum takes over, rising more than Bitcoin, marking an increase in market risk appetite (currently happening, ETH rose 54% this month vs. BTC's 10%);
Phase three: Altcoin frenzy, with small-cap coins rising far more than the overall market (signals are already present).
Why is Ethereum key? Because it is the 'infrastructure' of the crypto ecosystem: DeFi runs tens of billions in transactions daily, the largest NFT market is here, stablecoin transfers mainly rely on it, and Layer 2 (Arbitrum, Optimism) ultimately settles to ETH. When it rises, it signals the market: 'Don't just focus on Bitcoin; the entire ecosystem is worth allocating.'
Is the altcoin season coming? Three key indicators say 'yes.'
ETH/BTC ratio skyrockets: The exchange rate of Ethereum against Bitcoin has been rising, indicating that funds are shifting from BTC to ETH;
Bitcoin dominance is declining: The proportion of BTC in total market capitalization is falling, which is a typical signal of funds rotating into altcoins;
Altcoin season index is rising: The index specifically tracking altcoin strength has risen from 20+ to 30+, indicating a clear trend.
Historically, when these three signals appear simultaneously, it often means that significant volatility in altcoins is about to occur — possibly the most exciting market you’ll see this year.
Risk warning: Don't forget to buckle up during the euphoria.
Although the current situation is very favorable, be wary of these few pitfalls:
Regulatory flip-flop: If the U.S. or EU suddenly cracks down on staking or DeFi, the momentum could come to a sudden halt;
Macroeconomic black swans: Inflation rebound, geopolitical conflicts, or sudden interest rate hikes by the Fed could dampen risk appetite;
Profit-taking: After a significant rise, there will always be those who cash out; short-term corrections are normal, but don’t panic; the structural advantages remain.
Why is this time more worthy of anticipation?
The rises of Ethereum in 2017 and 2021 were more speculative; but 2025 is different:
With a spot ETF backing, institutional funds are for long-term allocation, not short-term speculation;
ETH can be staked for yield, providing a 'value anchor,' and is no longer just a speculative asset;
Stablecoin regulation is clear, solidifying Ethereum's position as the 'settlement layer.'
Fundamentals + cycle resonance; this wave of rise may be more lasting and more robust than the previous two.
Action guide for investors.
If history repeats itself, here’s how to position:
First, focus on the sustainability of ETH, especially whether it can stabilize above $4,500;
Pay attention to the ETH/BTC ratio; after breaking key resistance levels, altcoin opportunities will arise;
Prioritize selecting altcoins with 'real use': Layer 2 ecosystems, leading DeFi projects, and NFT infrastructure tend to perform best during ETH's bullish cycles.
For long-term holders: Don't be intimidated by short-term fluctuations; the structural advantages of ETH, the entry of institutions, earning capabilities, and ecological status are still intact.
For traders: Keep a close eye on Ethereum's trading volume and the flow of funds on major exchanges; this is key to seizing the timing for altcoin entry.
The good show in the crypto market has just begun. Bitcoin has raised the curtain, Ethereum is taking the lead, and the most exciting climax, the altcoin frenzy, may be just around the corner. Follow me; in the next issue, we will analyze the altcoin tracks that are worth positioning in advance, ensuring we pocket the cycle dividend.#BNB创新高 #BTC再创新高 #以太坊创历史新高倒计时
