The cryptocurrency cycle enters phase 2: rotation to Ethereum

Investor’s money begins to move from Bitcoin (BTC) to Ether (ETH), Ethereum’s native cryptocurrency. This suggests that the market rotation cycle progresses in phase 2 and that an Altseason could be starting to take shape.

At the time of publication of this note, Bitcoin shows a lateral movement after having reached its historical maximum (ATH) of $ 122,500.

Meanwhile, the price of Ethereum’s currency was quoting above $ 3,150, a level not seen since February 2025:

Historically, the Altseason usually begins in the final phase of each BTC bullish cycle and develops in well -defined stages, as Cryptonoticia reported.

Before continuing, it is important to point out that there is no unique definition of Altseason and the criteria used here is as follows: when 75% of the 50 main altcoins (leaving aside the stablecoins and the “wrapped” versions of Bitcoin and Ether) achieve a better performance than BTC.

According to Blockchaincentr explorer, 33% of the main Altcoins have exceeded the performance of the currency created by Satoshi Nakamoto in the last 3 months.

Now, what is missing for this period long for the traders?

The cycle is divided into 4 main phases: the first is characterized by a strong demand for BTC, whose price is triggered towards new historical maximums.

Then, in phase 2, once BTC stabilizes at high levels, Investors begin to move their capital towards ETHthe most valuable cryptocurrency on the market, to obtain greater yields. This causes, in turn, a reduction in the Bitcoin domain within the total market capitalization.

Once ETH charges impulse, phase 3 begins. This is when capital flows to other cryptocurrencies of great capitalization, a signal that reflects the enthusiasm in the market.

Phase 4 is the time when the “deranged euphoria” comes to the market and the speculative demand for cryptocurrencies is triggered. It is a period where greater profits are recorded, but there may also be higher losses than usual, because there are no rational foundations that explain those price increases.

Following the historical patterns, the market is at an important turning point, as explained We will enter a Altcoins season. ”

This means that BTC’s domain at key levels, together with the rupture of important resistances in the total capitalization of the digital asset market, suggests that interest and capital could flow with greater force towards cryptocurrencies, anticipating a broader and more diversified growth phase in the ecosystem.