- Altcoins are rallying against ETH following its all-time high, a trend expected to last until ETH hits its 21W EMA.
- Historical data supports altcoin dominance surges during ETH peaks, per a 2021 Journal of Risk study.
- ETH’s influence is reshaping market dynamics, challenging Bitcoin’s traditional dominance.
The cryptocurrency market is witnessing an intriguing shift, with altcoins gaining momentum against Ethereum (ETH) following its recent all-time high.
Renowned analyst Benjamin Cowen, in a detailed post on X, highlights a chart of TOTAL3-USD/ETH (total market cap excluding ETH against ETH) on a weekly timeframe. This chart reveals that altcoins have been rising against ETH for the past three weeks, a trend Cowen predicts will continue until ETH tests its 21-week exponential moving average (21W EMA).
Once this technical level is reached, he anticipates a potential reversal, with capital likely flowing back into ETH, causing altcoins to bleed. This analysis aligns with historical patterns observed during altseason cycles, as documented in a 2021 study from the Journal of Risk and Financial Management. The study noted that altcoin dominance often surges when ETH peaks, a phenomenon supported by the current data.
Cowen’s use of the 21W EMA, a widely respected indicator in technical analysis (per TradingView insights), underscores its reliability as a support band during bull markets, such as Bitcoin’s 2017 rally. This suggests the current altcoin rally may have a few more weeks of strength before a shift occurs. The broader market implications are significant. While Bitcoin has traditionally been the market’s bellwether, ETH’s growing influence is challenging this narrative. Insights from Tangem Blog’s 2025 altseason analysis indicate that ETH’s price action is increasingly a trigger for altcoin performance, reflecting a maturing Web3 ecosystem.
For investors, this presents a strategic opportunity to capitalize on altcoin gains in the short term while preparing for a potential ETH resurgence. However, the volatility inherent in such shifts warrants caution, as macroeconomic factors and ETF flows (per AInvest’s Q3 2025 report) continue to shape sentiment.
As the crypto market evolves, staying attuned to these technical signals and historical trends will be key to navigating the next phase of this dynamic cycle.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
