Ethereum News Today: Ethereum Outpaces Bitcoin 26% in Q3 Altcoin Rally Looms

Ethereum's strong performance in the third quarter has reignited hopes for a broader altcoin rally. The cryptocurrency market is showing early signs of a shift, with Ethereum outpacing Bitcoin and volume across altcoins surging. Ethereum's price has increased by over 26% in the third quarter, outperforming Bitcoin's 9.95% return. This performance gap is significant because, in past cycles, such strength from Ethereum has often signaled the start of an altcoin rally.

Analysts have noted that Ethereum's price structure appears bullish, with a cup and handle formation on the price chart. This formation resembles a late-2023 arrangement that led to a 100% rally. If Ethereum's price breaks the $3,100 neckline, it could rise 45% to the $3,800–$4,000 range. However, recent on-chain actions revealed that some whales are cashing out, which could introduce short-term resistance before momentum builds again.

Despite the whale activity, the overall market structure supports an extended altcoin expansion. The Total3 index, which excludes Bitcoin and Ethereum, has penetrated significant resistance and is only 18% off all-time highs. This indicates that altcoins are gaining traction, with Solana, Chainlink, and Avalanche among those beginning to show strength. The timing of these breakouts coincides with Ethereum's price strength, suggesting that altcoins may soon come into full swing.

Adding to the bullish sentiment is a large spike in crypto market volume, which stood at 119.91 billion, a new high in over three years. This volume candle represents the beginning of altseason, reflecting strong buying pressure from institutions and retail. Historical data shows that altcoin rallies often follow volume-led expansions, and the current market conditions align with this pattern.

In summary, Ethereum's outperformance of Bitcoin, coupled with increasing market volume and bullish technical indicators, suggests that an altcoin rally may be incoming. While whale activity may introduce short-term resistance, the overall market structure supports an extended expansion in altcoins. If Ethereum's price continues to rise and volume keeps increasing, altcoins could soon come into full swing, potentially leading to a significant rally in the broader cryptocurrency market.