Currently, the entire cryptocurrency market is experiencing a very critical phenomenon that many veterans feel deeply: Ethereum is surging strongly, while altcoins are almost stagnant or even declining!

This phenomenon actually reflects the fundamental disconnection of the institutional bull market. Let's analyze the reasons in detail, breaking it down into several dimensions for clarity.

1. Funds only choose 'high certainty' targets; ETH is currently the ceiling for altcoins.

The rise of ETH is because:

1. ETH is about to launch an ETF, the narrative is real, expectations are clear, and certainty is extremely high;

2. Institutions recognize ETH as 'Bitcoin among altcoins', the only Layer 1 that can be integrated into the traditional financial system;

3. ETH occupies a foundational position in DeFi, NFT, L2, Restaking, AI, and other tracks, being the underlying weighted coin of the entire ecosystem.

In simple terms, ETH is the 'safe and sexy' altcoin, while other altcoins are either unattractive or too risky in comparison.

2. Market sentiment is still in the 'half-believing, half-doubting' stage, with no large-scale capital entering altcoins.

The market is currently in the early to mid-stage of a bull market, characterized by:

Mainstream coins (BTC/ETH) steadily rising;

Altcoins slightly rising or consolidating;

When altcoins rise, they are quickly sold off, indicating a lack of buying capital;

Retail investors are hesitant, and institutions have not fully engaged yet.

The underlying reason is that retail investors lack confidence, and institutions are cautious. Therefore, funds are concentrated around ETH and other 'quasi-mainstream assets', leaving altcoins without liquidity.

3. Current BTC and ETH are 'capping capital', and altcoins can only wait for the 'spillover effect'.

Just like in the early stages of previous bull markets:

Money enters from fiat, first going into BTC;

Then flows from BTC to ETH;

Only then does the capital from ETH start to spread to smaller coins.

Currently, this 'liquidity' has just reached ETH and has not yet overflowed to altcoins.

Thus, even if altcoins have logic, they cannot move without capital to drive them.

Finally, I want to say that ETH is the focal point of the 'value low + high expectation' narrative. Currently, altcoins have no story, no money, and no popularity; it is inevitable that they cannot rise. But remember: once ETH stabilizes between $4000 and $5000, the ecosystem coins on ETH, L2, re-staking, AI tracks, etc., will begin to rotate!

Therefore: the strategy now is to hold a main position in ETH and a light position in potential Altcoins;

Only when ETH rises to the range where the main force believes 'expectations have been fulfilled' (such as after the ETF actually goes live), will it rotate to altcoins; that will be the real altcoin season!