Ethereum’s powerful rebound and massive ETF inflows are fueling renewed optimism across the crypto market. With Bitcoin’s dominance structure breaking down and altcoin charts flashing reversal signals, analysts suggest a full-fledged altseason could be on the horizon.

Ethereum’s Surge Reignites Altcoin Momentum

Ethereum has staged a sharp recovery, rising 44% in Q2 after a steep Q1 correction. The ETH/BTC ratio has stabilized, historically a precursor to altcoin rallies. Analysts note similar conditions preceded major altseasons in 2019 and 2020.

ETH currently trades near $2,449, and a push beyond $3,000 could confirm the market’s directional shift. Massive ETF inflows—totaling over $350 million in a single week—underscore growing institutional demand. Such behavior, dubbed “smart money” positioning, often sets the stage for a wider market rotation.

Bitcoin Dominance Signals Capital Rotation

Bitcoin’s market dominance is weakening, forming a descending wedge pattern almost identical to pre-altseason setups in previous cycles. With levels dipping into the so-called “Altcoin Fire Sale Zone,” analysts anticipate further capital rotation into alternative tokens.

Recent attempts to reclaim 64.5% dominance failed, and some charts suggest a potential fall toward 61%—a threshold that previously triggered rapid altcoin appreciation. If this pattern confirms, Bitcoin could temporarily cede market leadership to Ethereum and other major alts.

Triple-Bottom Structure on Altcoin Market Cap

The total altcoin market cap—excluding Bitcoin and Ethereum—has formed a rare triple-bottom pattern. A breakout above this formation’s resistance is already in motion, and historical precedent indicates such breakouts often lead to sharp market-wide gains.

Combined with falling BTC dominance and sustained ETH inflows, this structural signal adds weight to the altseason thesis. As capital flows begin shifting, technical and on-chain data together build the strongest case yet in 2025 for a broad altcoin surge.

Meanwhile, TRON on-chain activity hits record as TRX approaches key resistance