Spectacular rise of Ethereum: Are we on the verge of the altseason?

Tue 20 Feb 2024 ▪ 4 min of reading ▪ by Luc Jose A.
Getting informed Trading

Recently, Ether (ETH), the native crypto of Ethereum, has seen notable momentum. The asset is currently flirting with the $3,000 mark. This has sparked hope among crypto enthusiasts about the continuation of this trend with a positive effect on altcoins. A question that clearly divides analysts and experts.

Logo de la blockchain Ethereum

The Hope of an Altcoin Season Driven by Ethereum’s Ether (ETH)

The recent surge in the price of Ether (ETH), which has flirted with the $3,000 mark, has sparked hope for an impending “altseason” within the crypto community. However, analysts remain divided on the issue. On February 19, Ethereum’s native crypto reached an intraday high of $2,980. That’s its highest level in 22 months. Many enthusiasts believe this could herald the start of an ETH bull market and, consequently, an altcoin rally.

Henrik Andersson, Chief Investment Officer at Apollo Capital, highlighted several fundamental factors underpinning this sentiment. Among these are the upcoming updates to Ethereum and the mainnet launches for scaling solutions.

Furthermore, Ethereum’s relative underperformance compared to Bitcoin over the past year suggests a potential catch-up. Especially given its deflationary nature following the switch to Proof of Stake (PoS).

Yuga Cohler, Senior Director of Engineering at Coinbase, echoed similar sentiments. He notably highlights the correlation between an ETH bull market and positive outcomes for altcoins. Meanwhile, voices like that of Mikybull Crypto forecast a bullish March for the native asset of Ethereum blockchain, with $3,000 as a plausible target. He anticipates a significant increase in altcoin activity.

While enthusiasts anticipate an altcoin season driven by Ether, some analysts remain skeptical

Dissenting Voices Regarding This Outlook

However, Markus Thielen, Head of 10x Research, holds an opposing view. According to him, there is a lack of substantial evidence for the eventuality of an impending altcoin season. He points out that sustainable reductions in Bitcoin’s (BTC) dominance below 45% are required to foster a viable altcoin rally.

The crypto expert also notes that unlike previous increases observed during the ICO and DeFi summer bull markets, the current rise lacks a clear explanation. Save for the influx of investments into spot Bitcoin ETFs. In addition, the recent altcoin rallies have quickly dissipated, suggesting a higher risk-adjusted potential in favor of investments in BTC.

Markus Thielen’s analysis also questions the sustainability of Ethereum’s momentum. He believes it could be more motivated by the anticipation of the ETF approvals in May than by an increase in on-chain activity within decentralized applications (dApps). For the analyst, the current bull market will persist until 2025, a period during which altcoins may experience sporadic recoveries.

Supporting Markus Thielen’s cautious outlook, blockchain analytics firm Santiment cautions against overbought signals on the market. As indicated by the market value to realized value (MVRV) metric, it suggests above-average risk associated with buying or opening new positions during the current surge. This is while most crypto projects have generated medium and long-term profits since October 2023.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.