Altcoin Market Cap Surges 20% as Altseason Begins

The altcoin market is experiencing a significant shift, with several indicators pointing towards a renewed bullish momentum. The TOTAL3 chart, which tracks the market cap of all altcoins excluding Bitcoin and Ethereum, is forming a “cup and handle” structure. This technical pattern is viewed as bullish when the price breaks above the handle zone, and that breakout is now testing the $1 trillion level. Meanwhile, the TOTAL2 chart, which excludes only Bitcoin, has broken out of a descending wedge pattern, suggesting renewed buying interest. The market cap has now reached $1.215 trillion, rising more than $240 billion from its breakout point. The measured target of the move points to $1.455 trillion, suggesting a possible 20% upside. Both structural patterns show increased confidence among altcoin investors who remained cautious during the earlier consolidation periods.

Market sentiment, Ethereum's strength, and the shift in dominance are also supporting the altseason narrative. According to an observation, the Altcoin Index has officially entered the “altseason zone.” This zone has preceded extended altcoin runs in 2017 and 2021. Conditions now mirror those cycles closely, including capital rotation away from Bitcoin. Ethereum has gained over 8% against Bitcoin, while Bitcoin dominance is showing signs of reversal from the top of a multi-year wedge. On July 13, it was stated that the Altcoin Season of 2025 starts in July. Strong gains are especially projected among low-cap assets over the summer. These combined signals suggest that the altcoin rally may just be starting, with more participation likely in the weeks ahead.

The altcoin season of 2025 is reportedly beginning in July, as low-cap cryptocurrencies show early signs of accumulation. This development comes as the Bitcoin halving event has concluded, and institutional money is gradually flowing into altcoins. The outlook for the crypto market remains fundamentally optimistic, driven by robust institutional demand through ETFs, which fuels price discovery. SharpLink Gaming, a company led by one of Ethereum’s co-founders, has recently expanded its ETH holdings by acquiring over 16,000 ETH through Galaxy OTC. This significant off-exchange transaction has pushed the Ethereum price above the $3K barrier, highlighting the rapid institutional push for the world’s biggest altcoin. The move by SharpLink Gaming suggests a bullish outlook for Ethereum, as the company is likely leveraging ETH’s upcoming technological innovations and Web3 technologies, which have already proven beneficial for gaming enthusiasts.

Ethereum's price movement has been characterized by short-term bullishness, but long-term volatility has been a persistent issue. However, experts suggest that the ETH price is currently filling the Monthly CME gap between $2.9K and $3.35K, which could lead to a major potential price reversal. The next target zone is around $3.5K, indicating a lot of upside potential. Despite the optimistic views, the monthly price chart shows that Ethereum has been rejected at around $4K twice previously, painting a bearish image due to the “double-top” pattern. To invalidate this pattern, the Ethereum price must make a clean break above $4,071 and be supported by higher trading volume.

Multiple factors, including regulatory, technological, and institutional developments, have contributed to Ethereum’s growth and could continue to influence it in the future. Institutional accumulation has been significant, with major players buying over 1.8 million Ethereum during the first seven months of 2025. Additionally, on-chain whale addresses have collectively withdrawn 1.49 million ETH from exchanges, indicating long-term bullish behavior. The Cancun-Deneb and Pectra upgrades have also improved Ethereum’s performance and user experience, making it more development-friendly and ripe for more DeFi and dApp adoption. Furthermore, progressive regulations around ETH have opened the floodgates for US-based ETFs, retirement accounts, and pension funds to invest in Ethereum directly.

While Ethereum’s positive news paints a bullish picture, the market remains volatile, and the double top on the monthly charts gives some investors pause. Therefore, investors are advised to keep their minds open and portfolios diversified. Some of the best picks for smart investors include Bitcoin Hyper, Bitcoin, Best Wallet Token, Snorter, and Token6900. Bitcoin Hyper aims to bring more use cases to the Bitcoin network, while Bitcoin continues to benefit from massive institutional inflows and progressive regulatory measures. Best Wallet Token offers a multi-utility cryptocurrency wallet with robust facilities, and Snorter is a trading bot designed to find and invest in Solana-based meme coins. Token6900, a meme coin inspired by SPX6900, takes a comedic approach to the market, generating buzz within the cryptocurrency community.