- BlackRock rotated $561M from Bitcoin to Ethereum, purchasing $118.6M in ETH and holding since May without a single ETH sale.
- ETH/BTC monthly chart confirmed a breakout above 0.016 BTC, the same level that initiated the previous 2021 altcoin rally cycle.
- Bullish RSI and Stochastic RSI crosses on the ETH/BTC chart mirror the technical setup that led to past altseason movements and strong alt rallies.
Ethereum has begun to outperform Bitcoin after a technical breakout and new institutional interest and is signaling a reemergence of strength in the altcoin market.
ETH/BTC Breakout Suggests Shift in Market Dynamics
Ethereum has already validated a break on the monthly ETH/BTC chart and is above 0.0168 BTC. This level marked the start of the 2021 altseason, making its breach a key development. According to Crypflow on X, this breakout follows a bottoming structure in April.
Two indicators support Ethereum’s growing momentum. The Stochastic RSI formed a strong bullish cross, which has historically triggered major alt rallies. At the same time, the RSI has crossed above its moving average, a pattern that occurred before the previous altcoin market run.
The breakout has directed market attention to key resistance levels. The first major challenge is a trendline that has capped ETH/BTC since August 2022. A move above this line would increase the possibility of further upside.
Key Resistance Levels Could Determine Altcoin Season
If the trendline resistance is surpassed, Ethereum faces two key horizontal levels: 0.025 BTC and 0.034 BTC. These levels are considered the next tests for Ethereum’s dominance over Bitcoin.
The breakout pattern and current technical indicators suggest a potential structure similar to the 2021 cycle. Ethereum leading the move may indicate broader altcoin strength ahead, depending on how the market reacts to the upcoming resistance points.
The market is closely monitoring this structure for confirmation of extended altcoin strength across the board.
BlackRock Rotates from Bitcoin to Ethereum
Institutional behavior is also beginning to align with Ethereum’s technical momentum. According to a tweet from Junaid Dar (@JunaidDar85), BlackRock recently sold $561 million worth of Bitcoin and acquired $118.6 million in Ethereum.
This rotation occurred within two days and marks a notable change in allocation. Since May 7, BlackRock has not sold a single unit of ETH, further reinforcing market confidence.
With Ethereum gaining both technical strength and institutional support, capital rotation into altcoins appears to be accelerating.
