Ethereum Pushes Altcoins to the Edge of $1.56T Breakout – Here’s What’s Next
The daily chart for Ethereum continues to reflect strong bullish momentum, with price action rallying from the mid-$3,600s to above $4,200 before easing slightly.
The asset remains comfortably above both its short-term and medium-term exponential moving averages, signaling that the underlying uptrend is intact. Momentum readings such as the MACD histogram have shifted further into positive territory, confirming strengthening upside pressure, while the RSI remains elevated — a sign of persistent demand even as overbought risks build.
Daily chart for WETH/USD (Source: GeckoTerminal)
Order Book Shows Tight Battle Around $4.2K
Market depth data reveals significant bid wall activity between $4,200 and $4,213, acting as a short-term safety net for buyers. If these levels hold, Ethereum could quickly challenge the nearby ask walls at $4,218, $4,227, and $4,228.
Also read: $10K ETH? Analysts and Billionaires Say Ethereum Is Just Getting Started
Breaking through those thin resistance zones could trigger an acceleration to the upside. On the downside, support levels at $3,747, $3,628, and $3,469 remain the key areas where buyers may re-enter if sentiment softens.
Altcoin Market Cap Pushes Toward $1.56 Trillion
Meanwhile, the broader altcoin market — excluding Bitcoin — has printed consecutive higher highs over the past week and is now pressing against the $1.56 trillion resistance level.
Total altcoin crypto market cap (Source: TradingView)
Ethereum, as the largest altcoin by market capitalization, has been the main engine of this move. The breakout attempt raises an important question: is this rally mostly the result of ETH’s dominance, or could it pave the way for a broader capital rotation into mid- and small-cap altcoins?
Potential for Broader Market Rotation
If the total altcoin market cap breaks above $1.56 trillion, the move could encourage traders to diversify into other cryptocurrencies, sparking a wider rally.
For Ethereum, this could mean continued upside in the short term, with the possibility that other assets start to outperform as capital rotates. Traders may want to track smaller coins for early signs of strength if this scenario plays out.
Trade Setups to Watch
For bullish traders, a confirmed breakout above $4,228 with strong volume could be a trigger for fresh long entries, targeting higher resistance zones beyond the current range.
On the bearish side, a breakdown below the $4,200 bid wall could invite short-term selling pressure toward $3,747, which may act as the first take-profit level for short positions.
However, given the altcoin market’s bullish posture, short setups carry higher risk unless ETH decisively loses key supports.
ETH’s Influence on the Altcoin Market
Ethereum’s role at the forefront of this market surge means its technical direction will likely set the tone for the broader altcoin space.
Whether this becomes a sector-wide breakout or remains an ETH-led move will be a key factor to watch in the days ahead.
Don’t Miss the Next Big Crypto Wave!
Ethereum may be leading the charge now, but some smaller altcoins could deliver even bigger gains in 2025. In our in-depth guide, we break down the most promising projects, market trends, and key price levels to watch.
Read the full article: Top Altcoins to Buy in 2025 and position yourself ahead of the curve before the next breakout hits.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
