Ethereum, the Real Surge Hasn't Arrived Yet... 'Rally Starts After Bitcoin Rally Ends'

▲ Bitcoin (BTC), Ethereum (ETH)/AI Generated Image

An analysis suggests that while Ethereum (ETH) has not yet begun a full-blown explosive rally, it could re-enter the $4,000 range and trigger an altcoin season once Bitcoin (BTC)'s structural breakout is complete.

Bitcoinist reported on May 13 (local time), citing an analysis by crypto analyst Sykodelic, that Ethereum is creating a structure that could allow it to re-challenge its all-time high this year. Sykodelic explained that the conditions for Ethereum's bullish reversal depend on Bitcoin's next move, and only after Bitcoin finishes its market structure-changing movement can the Ethereum rally truly begin.

Sykodelic viewed Bitcoin's continued dominance of the crypto market as the key reason for the delay in Ethereum's rally. Bitcoin has shown a steady upward trend since early April, pushing close to $82,000 during its recent ascent. Bitcoinist stated that sustained institutional accumulation, including demand from derivatives traders, a relaxed macroeconomic environment, and Strategy, supported Bitcoin's bullish momentum.

The analysis focused on whether funds and momentum could shift to Ethereum after Bitcoin. Sykodelic explained that over the past five years, Ethereum has moved within a clear price range, repeatedly breaking out and recovering, with each range cycle lasting approximately 70 to 77 days. He analyzed that each time Ethereum recovered this structure, it showed strong upward momentum, moving towards the top or bottom of the range.

The weekly Moving Average Convergence Divergence (MACD) index was presented as a technical basis. Sykodelic noted that Ethereum has re-entered the same range that previously led to new all-time highs and has been consolidating its position for an ascent over the past 77 days. The argument is that if Ethereum returns to the upper end of its range, around $4,093, it could trigger the long-awaited altcoin rally.

Sykodelic predicted that even if Ethereum's ascent doesn't happen quickly, it will eventually begin. He forecasted that once the Ethereum rally fully kicks in, an altcoin season could last for 12 to 18 months, emphasizing that Ethereum could emerge as the next leading asset in the crypto market after Bitcoin's structural shift.

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