Good morning to everyone. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. As you all saw that ether was lagging but bitcoin was making new ATH but now Ethereum has officially crossed above its previous all-time high, marking a major milestone and signaling renewed bullish momentum in the crypto market. While Bitcoin has been consolidating in a tight range for the past several weeks and seems to be nearing its cycle top based on historical four-year cycle patterns and indicators like NUPL Ethereum has continued to gain strength. The price structure of ETH shows a consistent rally followed by consolidation, with each dip forming higher lows, indicating a healthy uptrend. At the macro level, the drastic drop in the U.S. Reverse Repo balances from $2.56 trillion in December 2022 to around $36 billion today hints at reduced liquidity parked by banks, potentially encouraging the Fed to inject more liquidity into the system. Historically, such conditions have supported bullish moves in crypto markets. Additionally, the NUPL indicator, which reflects the unrealized profits and losses of Bitcoin holders, shows that we haven’t yet entered the euphoria zone suggesting there might still be room left in the current bull run before a full-scale top is reached.
At the same time, altcoins which have lagged behind Ethereum and Bitcoin so far are starting to flash early signs of a potential breakout. Key charts comparing altcoin market cap against Bitcoin and Ethereum show that long-standing downtrends are being tested or broken, with RSI and Stochastic RSI indicators resetting from oversold levels. This often precedes a shift in capital flow toward altcoins. Ethereum dominance has been climbing steadily over the past few months, but recent price action suggests that the capital rotation may now move further into smaller-cap altcoins, especially if major resistance levels such as the 10.80% altcoin dominance zone are broken on a monthly close. This would mark a strong confirmation that the altcoin season has begun. However, it’s important to remember that not all altcoins will pump together some may peak early, others may move later. As institutions are largely focused on BTC and ETH, it will be primarily retail investors driving this phase of the cycle. So if you’re watching the charts closely, the next few weeks could be critical in confirming whether altcoins are ready for their next major leg up. That's it for today. Thanks and have a good day!!
