- ETH decouples from BTC as traders rotate capital into altcoins, signaling the start of Altseason.
- Altcoin Season Index rises with 23% of alts outperforming BTC, repeating June trend since 2022.
- Web3 funding hits $3.8B in Q1 2025, boosting early-stage altcoins in AI, gaming, and modular chains.
The crypto market is showing early signs that the Altcoin Season has begun. With Ethereum leading the breakout and daily gains in many altcoins accelerating, traders are now watching for the return of 20–25% moves as a regular pattern. Several technical and on-chain metrics now support the case for a wider altcoin rally.
Ethereum Strength and Rotating Capital Suggest Broader Altcoin Surge
According to an analysis prepared by CryptoWZRD on X, Ethereum has started to decouple from Bitcoin. A multi-year cup-and-handle pattern is forming on the ETH/BTC chart, suggesting potential breakout strength.
When Ethereum gains dominance, it often signals the beginning of capital rotation into other altcoins. Sensei also observed that the OTHERS/BTC ratio is bouncing from a multi-year ascending trendline.
Similar moves in 2018 and 2021 preceded previous altseasons. Currently, momentum is building as Bitcoin dominance holds below key resistance levels. ETH/BTC volume is rising, reflecting renewed institutional and retail focus on higher-beta tokens.
Altcoin Index and On-Chain Activity Support Continuation
The Altcoin Season Index, tracked by Alphpractal, shows early movement above the Bitcoin dominance zone. As of mid-June 2025, over 23% of altcoins are outperforming BTC. Alphpractal’s data shows this trend has repeated in June every year since 2022, often marking the beginning of altcoin strength.
Chiefy stated on X, “The most powerful stage of Altseason starts tomorrow.” Many market watchers agree, noting that liquidity is shifting into sectors like AI, modular blockchains, and gaming. Web3 funding also rose to $3.8 billion in Q1 2025, with a concentration in early-stage altcoin projects.
Nehal added that the Altseason Index currently sits at 20, which is below the 75 threshold. However, the current cycle matches historical patterns that have triggered strong altcoin moves in prior years. With Bitcoin consolidating and capital flowing into altcoins, traders expect daily gains of 20–25% to become common again.
