Altcoin Market Cap Dips 5.8% Amid 4-Year Consolidation Phase

The altcoin market has been in a state of consolidation for the past four years, forming a bullish ascending triangle pattern. This pattern is characterized by higher lows since 2020, with consistent resistance at a key horizontal level. The base of the triangle extends from early 2020, with the price pressing against resistance over multiple attempts. This configuration suggests that the market has been building strength over time, with prices fluctuating within the range but showing an overall trajectory of higher lows, indicating growing demand.

Analysts suggest that the market may be experiencing a "final shakeout," a temporary dip meant to flush out weaker positions before a decisive move higher. This phase is characterized by increased volatility and uncertainty as the market prepares for a potential shift in trend. The idea of a four-year consolidation suggests that altcoins have been building strength over time, with the overall trajectory of higher lows indicating growing demand. Such a pattern suggests accumulation, a phase in which buyers gradually increase their positions.

Supporting the bullish sentiment, the Altcoin Index has just entered this critical phase. Analysts suggest that strategic investments made now could yield exponential returns. This point marks a new phase in the crypto 4-year cycle that mirrors the explosive rallies of 2017 and 2021. The total altcoin market cap, excluding Bitcoin and Ethereum, is currently valued at approximately $823.1 billion. Over the past week, the market cap has dipped by about 5.8%, reflecting ongoing volatility as the market copes with macroeconomic uncertainties.

Among the top-ranking altcoins, BNB is trading around $645, a 0.8% down in the past day, increasing its loss to 3.3% in the past week. Solana is priced at approximately $145.6, showing a daily decline of about 1.3% in the same period. In contrast, XRP holds steady at $2.16, recording modest intraday gains. Cardano (ADA) trades near $0.60, with a 2.4% dip, while Tron (TRX) is up 0.9%, priced at $0.2757. These movements suggest a mixed trend among major altcoins, even as the broader market cap attempts to solidify its breakout.

Ethereum, one of the leading altcoins, has been facing intense volatility due to geopolitical tensions. Despite this uncertainty, Ethereum has shown resilience by maintaining its price above the $2,500 level. However, it is currently trading just below a critical resistance level at $2,675, which has acted as a barrier multiple times in recent weeks. A breakout above this level could trigger renewed upside momentum and set the stage for a rally toward $3,000.

Market participants are divided on Ethereum's short-term direction, but the technical landscape offers a potentially bullish clue. According to top analyst Ted Pillows, Ethereum is on the verge of completing a golden cross, a chart pattern where the 50-day moving average crosses above the 200-day moving average. Historically, this signal has preceded strong upward trends in ETH, with the last golden cross resulting in a 35% surge over the following weeks. If bulls manage to reclaim $2,675 and the golden cross confirms, Ethereum could enter a powerful breakout phase, potentially sparking broader optimism across the altcoin market.

Ethereum is currently trading within a range that has persisted for more than six weeks, reflecting growing indecision among market participants. This indecision is largely driven by geopolitical uncertainty, which has injected volatility across financial markets. While price action remains contained, ETH bulls are showing resilience by defending the $2,500 level, a crucial zone that has repeatedly served as support during the past month. However, to regain momentum, Ethereum must break above the $2,750–$2,800 resistance area, which has proven to be a major barrier since early May. A reclaim of this level would likely trigger a wave of buying, as it would mark the end of the current sideways phase and possibly initiate a fresh trend toward the $3,000 mark.

The coming days may determine whether the golden cross will serve as a launchpad for a major rally. If bulls hold $2,500 and reclaim $2,800, Ethereum could be preparing for a significant breakout, potentially igniting momentum across the altcoin sector. However, if ETH fails to break through the $2,675–$2,700 resistance zone, it could continue to consolidate, with the risk of slipping into lower support near $2,400, which could shift sentiment bearish. The pattern shows continued consolidation between a clearly defined support and resistance band, with the 50 and 100 moving averages flattening, a sign of market indecision. Volume has also declined slightly, reinforcing the idea that the market is waiting for a catalyst.