As Bitcoin reclaimed $100K, the growing weakness in Ethereum projects weakness among altcoins. Will this weakness delay the 2025 altcoin season or is a bounce back inevitable?
Last week, the total crypto market cap dropped by 7.58% from $3.45 to a closing price of $3.19. Currently, the crypto market cap stands at $3.16 trillion, which marks a significant bounce back after dropping to $2.81 trillion at the start of this week.
While the overall tone remains bearish in the crypto market, some glittering hopes of a bullish reversal hint at a potential all-time season. However, facing a similar situation to the broader market, the total market cap of cryptocurrencies, excluding BTC BTC $106 273 24h volatility: 0.7% Market cap: $2.11 T Vol. 24h: $17.73 B and ETH ETH $2 574 24h volatility: 1.5% Market cap: $310.67 B Vol. 24h: $14.11 B , struggles at $883 billion. Will the altcoins regain bullish momentum as the crypto market and Bitcoin struggle for a bounce-back rally?
Bitcoin vs. Ethereum Price Divergence
Currently, Bitcoin and Ethereum are projecting diverse and opposing trends. Over the past few months, Bitcoin has hit the $100,000 mark nearly six times.
Surprisingly, with each Bitcoin peak nearing the $100,000 mark, Ethereum makes a lower high. The first time Bitcoin touched the $100,000 milestone, Ethereum stood at $4,000.
Every time Bitcoin hits $100K, Ethereum sinks lower. pic.twitter.com/BPleUTMw0J
— Bitcoin News (@BitcoinNewsCom) February 3, 2025
On the second touch, Ethereum dropped to $3.9K. On the third attempt, Ethereum further slid down to $3.7K. By the fourth time, Ethereum dropped to $3.4K.
At the fifth peak of Bitcoin at $100,000, Ethereum dropped to $3.3K. In the most recent peak of Bitcoin, hitting the $100,000 mark, Ethereum recorded a market price of $2.8K.
With the divergence in the Bitcoin and Ethereum prices, a potential weakness could be possible among Bitcoin and altcoins. In comparison on a weekly time frame, the ETH/BTC chart reveals growing weakness in Ethereum against Bitcoin.
This has resulted in a plunge from 0.03567 BTC to 0.03222 BTC. Currently, the ETH/BTC pair stands at 0.02748 BTC as it tests the 78.60% Fibonacci level.
While ETH remains a crucial support level, the oversold RSI also hints at a potential reversal.
Ted Pillows’ Bullish Outlook on Altcoin Season
Apart from the divergence between Bitcoin and Ethereum, Ted Pillows takes a bullish stance on the upcoming altcoin season. In his recent X post, Ted Pillows, a crypto analyst, highlights the frequent double-bottom reversals in the altcoin market.
This bull run has definitely been different for alts.
The primary reason behind this is 1000+ daily coin launches along with top exchanges perp listing to manipulate the market.
But that doesn't mean there won't be an Altseason.
The current Altcoin MCap looks pretty similar to… pic.twitter.com/vUJuJdEwQI
— Ted (@TedPillows) February 3, 2025
From presenting his analysis on a monthly time frame, the crypto total market cap excluding Bitcoin has had three double-bottom reversals since 2015. Furthermore, the current double-bottom reversal shows a canonical similarity with the 2017 and 2021 bull markets.
Based on the RSI indicator, the altcoin season begins after a small reaccumulation phase. Currently, the RSI line has outgrown the reaccumulation part and is teasing a potential bull market in the altcoin segment.
As the overall crypto market shows signs of recovery, the divergence between Bitcoin and Ethereum highlights underlying market weaknesses. However, a bullish analysis from Ted Pillows suggests that altcoins could regain momentum, potentially leading to a new altcoin season if key support levels hold.
next