- Ethereum is leading altcoin momentum as the $TOTAL index tests its 2021 all-time high resistance zone around $1.14 trillion.
- Historical patterns show altcoin market cap rallies accelerate after breakouts, with prior cycles sparking sector-wide liquidity rotation and price expansion.
- Technical signals confirm strength, including RSI trend reversal and ascending triangle breakout, as traders await the Federal Reserve’s key policy decision.
The Altcoin Market Cap is approaching a key breakout level near $1.14 trillion, raising questions about whether momentum is shifting from Bitcoin to Ethereum. Market participants are closely monitoring this stage as altcoins press against the 2021 highs.
Ethereum Takes the Lead in Market Rotation
Daan Crypto Trades observed that while Bitcoin has already advanced into price discovery, altcoins have continued to lag behind. The $TOTAL index is now testing a crucial resistance, with Ethereum appearing as the frontrunner in the process.
Historically, Ethereum strength often precedes a broader wave of rallies across the altcoin sector. Liquidity tends to rotate after ETH gains ground, pushing mid-cap and lower-cap assets into stronger phases of growth.
The parallel to 2021 remains clear. Following the break of the 2017 highs, the total altcoin market tripled within months. Though traders consider a full repeat less likely due to market maturity, past examples suggest that confirmed breakouts often fuel further continuation.
Market Patterns and Price Discovery Phases
When altcoins surpass previous highs, the market often enters a price discovery phase. This stage tends to attract new capital, accelerate moves, and create conditions where valuations expand beyond prior resistance levels.
Daan Crypto Trades noted that such breakouts have historically coincided with periods of excitement and sustained continuation. Traders see the current setup as a similar potential shift, contingent on whether the $TOTAL index closes firmly above resistance.
The rotation between assets has also been a recurring pattern. Bitcoin typically leads cycles, but once it stabilizes, Ethereum often gains momentum. This shift then sparks wider rallies across smaller altcoins, creating broader sector growth.
Technical Signals and External Factors
Analyst 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 added that technical indicators are strengthening the bullish case. The Relative Strength Index for altcoins has broken a 1.5-year downtrend, suggesting renewed strength across the market.
Additionally, the $TOTAL index has recently broken out from an ascending triangle pattern that has been forming for more than a year. Such formations are often read as continuation structures, supporting expectations of further upward pressure if sustained.
The timing is also notable with the Federal Open Market Committee (FOMC) meeting approaching. Monetary policy outcomes can influence liquidity conditions, shaping the immediate response of traders preparing for a potential breakout in altcoins.
