Ethereum Price Outperforms BTC: Altcoin Rally Incoming?

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Ethereum Price Outperforms BTC: Altcoin Rally Incoming？

• Ethereum price outpaced Bitcoin price by 16% in Q3, fueling expectations of a fresh altcoin rally.
• Altseason gained traction as the crypto market volume hit its highest in 3 years.
• Meanwhile, Total3 is just 18% below ATH with confirmed breakouts across major altcoins.

Ethereums strong Q3 performance has revived hopes for a broader altcoin rally. The market is showing early signs of a shift, as ETH continues to outperform Bitcoin and volume across altcoins surges.

While Ethereum price structure appears bullish, whale activity suggests some may begin taking profits.

This could introduce short-term resistance before momentum builds again. However, many analysts believe the groundwork for altseason is already in place.

Ethereum Strength Renews Optimism for Altcoin Rally

Ethereum has gained over 26% in Q3, outperforming Bitcoins 9.95% return. This performance gap is notable because in past cycles, such strength from Ethereum has often signaled the start of altcoin rally.

Analyst Carl Moon said, “Altcoin season could start here,” pointing to historical trends. He referenced previous periods where ETH led the broader altcoin market higher.

Source: Carl Moon, X

Adding to the bullish setup is a cup and handle formation on the Ethereum price chart. Analyst Batman sees this as a key signal.

The formation resembled a late-2023 arrangement which led to a 100 percent rally. If Ethereum price breaks the $3,100 neckline, it could rise 45% to the $3,800–$4,000 range.

Ethereum Price 1-Day Chart: Source: Batman, X

Interestingly, Ethereum price resilience has created optimism across the crypto sector. Traders are preparing for liquidity to shift to smaller-cap altcoins. This could accelerate if Ethereum price continues its outperformance.

ETH Whale Moves Reflect Caution

However, recent on-chain actions revealed that some of the whales are cashing out. Lookonchain data revealed Trend Research sold 48,946 ETH worth $151 Million.

This sale was used to repay an Aave loan. The firm had accumulated over 184,000 ETH between February and June at $2,118 each. After the sale, they still hold 136,182 ETH, valued at over $430 Million.

At the same time, another whale bet against Ethereum in the short term. A single whale wallet- 0x2258- took a leveraged short position by placing 18x leverage.

Source: Lookonchain Data

Remarkably, the Ethereum whale is currently on a $3.5 Million unrealized loss. If ETH price breaks above $3,321.81, the position will be liquidated.

Record Market Volume Points to Start of Altseason

Moreover, a large spike in the volumes on crypto has contributed to bullish speculations. BitElite17 pointed out an all-time volume candle in the total market cap chart.

Volume stood at 119.91 billion, a new high in over three years. “This volume candle represents the beginning of altseason,” the analyst wrote.

Source: BitElite17, X

Such a spike in volume tends to precede significant price action. It reflects strong buying pressure from institutions and retail and aligns with increasing altcoin dominance. Historical data shows altcoin rallies often follow volume-led expansions.

SharpLink Gaming also made headlines with its ETH accumulation. The company purchased 5,188 ETH, at a cost of $15.76 Million and added it to its treasury.

Their cumulative holdings have now surpassed 285,000 ETH, worth $871 Million. This demonstrated that still smart money sees value in Ethereum even in the current volatility.

If Ethereum price manages to maintain its breakout and the volume keeps increasing, altcoins might soon come into full swing.

Market Structure Supports Extended Altcoin Expansion

In the meantime, the altcoin rally is confirmed by the technical indicators on the market. The Total3, without Bitcoin and Ethereum, has penetrated significant resistance. According to analyst Jelle, altcoins are only 18% off all-time highs.

Source: Jelle, X

The chart depicted a pattern of higher lows and breakout candles because the momentum is clearly building.

On the same chart, analyst CryptoELITES also noted there was a rounded bottom breakout pattern. The structure typically signals multi-month expansion.

Source: CryptoElites, X

Altcoins like Solana, Chainlink, and Avalanche are beginning to gain traction. The timing of these breakouts coincides with Ethereum price strength. Historically, when ETH breaks out, altcoins move shortly after.