Ethereum News Today: Total 3 Shatters Megaphone Pattern, Signals Altseason Turn as Altcoins Rally

Altcoins AVAX, DOT, and ALGO face short-term declines in June 2025 amid broader market volatility, though technical and institutional indicators suggest long-term resilience. The Total 3 index, which tracks the combined market capitalization of altcoins excluding Bitcoin and Ethereum, recently broke out from a Descending Megaphone Pattern-a technical formation often signaling a reversal to bullish momentum. According to crypto analyst Trader Tardigrade, this breakout, confirmed by increased trading volumes and a 20% surge in altcoin market cap transactions, marks the onset of an "altseason," a period historically associated with strong upward price movements in smaller-cap cryptocurrencies.

The breakout aligns with a weakening S&P 500, which dipped 0.3% as of June 11, 2025, and a Nasdaq Composite decline of 0.4%. This stock market softness has driven risk-on sentiment toward crypto, with altcoins like Ethereum (ETH) and Binance Coin (BNB) showing early strength. ETH rose 2.1% to $3,650, while BNB climbed 1.8% to $620 on Binance, reflecting capital rotation from major cryptos to altcoins. Cardano (ADA) saw a 15% surge in trading volume over 24 hours, indicating growing retail and institutional interest.

On-chain data reinforces this narrative. Ethereum's gas fees increased by 10% in 12 hours, signaling heightened network activity tied to altcoin transactions. The Relative Strength Index (RSI) for ETH/BTC stood at 62 on the daily chart, suggesting further upside potential before overbought conditions. Meanwhile, Grayscale's altcoin trust inflows rose 5% week-over-week, underscoring institutional confidence in altcoin momentum.

However, short-term challenges persist. AVAX, DOT, and ALGO have all seen declines in recent weeks, pressured by broader market corrections and speculative profit-taking. For instance, DOT's price dropped below $5.50 after a brief rally, while ALGO faced resistance at $0.20. Analysts caution that sudden stock market recoveries could pull capital back to equities, stalling altcoin rallies. Yet, the Total 3 index's breakout from the Descending Megaphone Pattern-supported by a 20% volume surge-suggests a structural shift in market dynamics.

Cross-asset correlations remain critical. Bitcoin's stability near $69,000 contrasts with altcoin outperformance, a pattern typical during stock market uncertainty. Institutional money flow, as inferred from Grayscale's altcoin trust inflows, further underscores the potential for sustained altcoin momentum. Traders are advised to monitor key resistance levels for Total 3 and individual altcoins, alongside stock market sentiment, to time entries and exits effectively.

In summary, the Total 3 breakout and potential altseason present compelling opportunities for crypto traders, particularly as stock markets face headwinds. While AVAX, DOT, and ALGO grapple with near-term declines, technical and institutional signals highlight their long-term resilience. Staying attuned to volume spikes, on-chain data, and institutional movements will be key to navigating this dynamic environment.

Source: [1] Total 3 Breakout Signals Altseason: Descending Megaphone Pattern Confirms Altcoin Pump (2025 Analysis) (https://blockchain.news/flashnews/total-3-breakout-signals-altseason-descending-megaphone-pattern-confirms-altcoin-pump-2025-analysis)