Altcoin boom: Ethereum, XRP and Layer 1 tokens are making waves

The crypto market is witnessing a vibrant and hopeful phase, especially with the resurgence of altcoins. Ethereum, with an impressive increase of over 23%, has risen to the milestone of 3,430 dollars, marking a new breakout and generating strong excitement for other coins. This is the main driving force behind the simultaneous growth of altcoins, opening up a new season for the crypto market.

The Shift of Capital: Altcoin Gradually Surpasses Bitcoin

Not only Ethereum, but also leading Layer-1 cryptocurrencies like XRP and Solana are experiencing strong growth, with increases of +32% and 10% respectively over the week. This is a signal that capital is gradually shifting from Bitcoin to altcoins, a notable trend in recent weeks. Projects like Cardano, Polkadot, and Chainlink are also attracting significant interest, not only from the community but also from large institutions, thanks to greater clarity in regulatory frameworks.

The crypto market is currently experiencing strong momentum from legal policies in the United States. The U.S. Congress is preparing to pass three important bills: the Genesis Act ( regulating stablecoins), the Clarity Act ( classifying cryptocurrencies), and the bill to block U.S. CBDC. Among them, the Genesis Act has been passed by the Senate and is expected to be signed soon, bringing a new wave of confidence in major cryptocurrencies such as Bitcoin and Ethereum.

The Altcoin season is gradually heating up again as the MVRV index from CryptoQuant shows sustainable momentum for altcoins for the first time in over a year. Capital is gradually shifting from Bitcoin to Layer-1 coins like SUI (+36%), SEI (+41%), and ETH (+23.3%). Meanwhile, interest in meme coins is sharply declining, reflecting a clear trend in the market shift.

Ethereum, in particular, has surpassed the $3,300 mark for the first time in five months, indicating that the strength of altcoin is gradually recovering. If Bitcoin continues to consolidate the price level of $112,000, this could further boost altcoins. However, the strong volatility of Bitcoin may reduce the liquidity of the entire market.

Growth Prospects of Ethereum

The price of Ethereum is currently leading the recovery of altcoins, rising sharply by 9%. The breakthrough of the important resistance level of 2,800 dollars has been particularly emphasized by analyst Michaël van de Poppe, considering it a strong signal that the strength of altcoins is gradually recovering, with Ethereum as the leader.

Currently, Ethereum is only 9.7% away from breaking out of the 4-year-long accumulation triangle pattern — a technical pattern with great potential that could trigger a strong price breakout in a parabolic manner.

Michaël van de Poppe believes that Ethereum is on track to reach the $4,000 mark, asserting that any short-term correction of Ethereum will be a great opportunity for investors to enter the market, especially considering the solid fundamentals of this coin.

In addition to technical factors, another notable driver comes from SharpLink Gaming, a public company that has just purchased 9,424.69 ETH worth approximately 32 million dollars. This move reflects the growing interest from institutions in Ethereum, especially compared to Bitcoin.

In addition, a potential "cup and handle" pattern is also gradually forming on the price chart of ETH, similar to the pattern that appeared at the end of 2023 before the price surged by 100%. If Ethereum breaks through the important resistance level of $3,100 (the neckline of the pattern), crypto analyst Batman predicts that the price could rise to the range of $3,800 to $4,000.

A strong supporting factor for the bullish scenario is the unusual behavior of whales. A large Short position with 18x leverage is currently facing a loss of 3.5 million dollars. If Ethereum rises above 3,500 dollars, this could trigger a Short squeeze, driving the price even higher.

In addition, attention from institutions is increasing as Ethereum gradually weakens Bitcoin's long-standing dominance in ETF funds. This interest from institutional investors could be a key driver for Ethereum to continue its strong growth in the near future.

Bitcoin Price Prediction: A New High Will Be Established

Ray Wang, the founder of Constellation Research, predicts that Bitcoin could reach $150,000 within the next six months, thanks to strong capital flows from national investment funds and transparency in U.S. regulations. With interest rates expected to decrease and the dollar weakening, this expert believes that national policy adoption is driving the increasing demand for Bitcoin.

Notably, the CEO of Bitwise, with the boldest viewpoint, aims for Bitcoin to reach $200,000 by the end of the year. He pointed out that the momentum of institutions has just begun, with 125 public companies holding Bitcoin, and thousands of other companies may follow suit as cryptocurrency regulations are refined.

According to Altcoin Daily, 2025 will be a "breakout year" for the crypto market. With a strong influx of institutional capital, political barriers being broken down, and a robust recovery of altcoins, the cryptocurrency market seems ready for a strong growth cycle. Whether Bitcoin peaks at $135,000 or $200,000, one thing is clear: the biggest opportunities are yet to come.

The crypto market is currently in a promising phase, as altcoins like Ethereum are experiencing a breakout and attracting the attention of institutional investors. The strong market movements, combined with favorable regulatory policies from the U.S. government, are creating a solid foundation for future growth. With positive forecasts from experts, 2025 promises to be a hopeful year for all cryptocurrency investors.

Emma