Ethereum, the real surge hasn't come yet..."Rise begins only after Bitcoin rally ends"

▲ Bitcoin (BTC), Ethereum (ETH)/AI-generated image

While Ethereum (ETH) has not yet started its full-fledged explosive rally, an analysis suggests that once Bitcoin's (BTC) structural breakthrough is complete, it could trigger a re-entry into the $4,000 range and an altcoin season.

On May 13 (local time), Bitcoinist reported, citing an analysis by cryptocurrency 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, stating that the Ethereum rally can only truly begin after Bitcoin finishes its market structure-changing moves.

Sykodelic identified Bitcoin's continued dominance of the cryptocurrency market as the key reason for the delay in the Ethereum rally. Bitcoin has shown a steady upward trend since early April and recently pushed close to $82,000 during its latest ascent. Bitcoinist reported that demand from derivatives traders, a loosened macroeconomic environment, and continuous accumulation by institutions like Strategy have supported Bitcoin's strength.

The focus of the analysis was 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 experiencing breakouts and recoveries, 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 either the top or bottom of the range.

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

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

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