- As Ethereum moves closer to $5,000, traders believe a fresh altcoin rally could soon begin, bringing back market excitement.
- Big investors are putting more money into Bitcoin and Ethereum, while smaller coins are finding it hard to gain attention.
- The crypto market is becoming smarter, with traders now focusing on real value and strong projects instead of quick hype.
The crypto market stands at a decisive point as analysts anticipate Ethereum’s potential surge above $5,000. Ash Crypto, a well-known market commentator, recently explained on X that true “altseason” will only emerge once Ethereum breaks its all-time high. His chart reveals how altcoin dominance has historically surged only after Ethereum’s explosive rallies.
According to Ash Crypto’s chart, altcoin dominance once peaked near 17.51% in 2021. Since then, the metric has fallen to 7.63%, indicating a sharp change in market sentiment. As investors prioritized safety above speculation, the drop continued into 2022 and 2023.
Ethereum’s Critical Role
Ethereum’s price action mirrors the evolution of altcoin dominance. It traded near $1,000 in early 2021 before climbing sharply during that year’s bull run. Its rise was stopped by a resistance wall that developed close to $5,000. Ethereum spent two years consolidating between $1,000 and $3,000 following its high. The asset is now getting close to its $5,000 ceiling once more in late 2025.
A green circle on Ash Crypto’s chart highlights a potential breakout attempt, suggesting mounting buying pressure. Besides, historical data indicates that altcoins usually outperform once Ethereum gains strength. Consequently, many traders view Ethereum’s move beyond $5,000 as the signal for the next altseason.
Capital Concentration and Market Divide
Most altcoins have not kept up with the growth of popular assets like Ethereum, XRP, and Solana. This year, BNB is the only cryptocurrency to reach record highs; Chainlink, Cardano, and Dogecoin have all had difficulties. Their performances range from modest gains to significant losses, according to CoinGecko.
Jeffrey Ding of HashKey Group noted, “Capital naturally prefers assets with high liquidity, clear narratives, and strong certainty.” He explained that institutional inflows now dominate market direction, pushing funds toward Bitcoin and Ethereum. Similarly, Peter Chung of Presto Research said, “Market participants have learned over the years how to evaluate projects based on their merits.”
