Altcoin Rally Expected as Ethereum Leads Market Surge

Economist Henrik Zeberg has forecasted a significant surge in altcoins in the upcoming week, attributing this prediction to technical patterns that indicate bullish momentum. Zeberg's projection is based on the development of "wave iii of wave 3 of wave C" in most altcoins, a pattern he highlighted in an X post on July 12. This wave pattern references Elliott Wave Theory, which traders use to analyze market psychology and price trends. In this framework, Wave 3 is typically the strongest, with Wave iii representing an especially powerful sub-phase of acceleration.

Zeberg also noted that Ethereum (ETH) is already showing the expected breakout and is likely to lead the broader altcoin rally. This behavior is typical of altcoin seasons, when capital rotates out of Bitcoin into smaller cryptocurrencies, amplifying gains across the market. The expert expects Ethereum to rise further before a summer lull, a period when crypto trading often slows. However, he warned that the rally could be followed by a sharp pullback later in the season, suggesting traders should prepare for significant volatility.

Cryptocurrency trading expert Michaël van de Poppe observed that Bitcoin dominance is weakening, with a clear bearish divergence emerging. Historically, such patterns have signaled short-term reversals and triggered rallies in altcoins. Key support around 54% to 55% is now in focus, and a confirmed drop below this level could drive a rotation into altcoins over the next one to two weeks, as traders seek higher returns outside of Bitcoin.

Pseudonymous analyst El_crypto_prof highlighted growing altcoin optimism, noting that the TOTAL3 index, which tracks the altcoin market cap excluding Bitcoin and Ethereum, is flashing a bullish signal. The weekly MACD has made a bullish cross, a move that has historically marked the start of strong altcoin rallies. His analysis indicates that the market is breaking out of a descending broadening wedge, a bullish pattern. A similar breakout in November 2024 led to a powerful altcoin rally, and the current setup in July 2025 appears to mirror that move.