The Altcoin Season Index has skyrocketed to 71, sparking optimism among analysts, and the crypto market may be moving from the Ethereum (ETH) season to a full-fledged Altcoin season.
Beyond the index, Market Watchers also point out additional signals suggesting that a wider Altcoin rally could be on the horizon.
From ETH to Low Cap: Analysts Discuss the following in Market Rotation
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According to blockchain centre data, the Altcoin season index rose sharply from 59 yesterday to 71 at press time. Typically, readings above 75 indicate the start of the AltSeason. This is 75% of the top 50 Altcoins outperform Bitcoin over 90 days.
The index has not yet exceeded its threshold, but its rapid climbing has already attracted the attention of traders.
“The Altcoin season is fully powerful and looks like it’s about to happen in the end a transition from ETH to all the other coins,” the analyst posted.
Additionally, trader Merlin also highlighted another major indication. In a post on X (formerly Twitter), he pointed out that Bitcoin’s Dominance (BTC.D), which tracks the share of Bitcoin’s total market capitalization, has fallen below the main support level. Merlijn emphasized that this drop is happening quickly, not slowly.
“Every cycle, this marks the same result. Bitcoin cools. Alts lights. No spins come. It’s already here. This is how it always starts,” he added.
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From a technical standpoint, another analyst resembles the historical pattern. He outlined in 2017 that Altcoins made a breakout after a considerable amount of time in integration, causing one of the most dramatic gatherings in Crypto’s history.
He further noted that the current setup was very similar to that period. This structure shows familiar signs. Descending wedges, confirmed breakouts, and the continuous accumulation stage where investors gradually position themselves. His analysis suggests that together, these factors may already be in place for another important altcoin surge.
Meanwhile, prominent investor Lark Davis highlighted his recent breakout at Altcoins, noting that they are rising from the formation of the Triangle.
“The integrations from mid-August look to be ready for a higher resolution. The RSI is not overheated and the timing is perfectly lined up with the BTC->ETH->ALT spin,” commented Davis.
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So all these signals refer to the capital turnover to Altcoins in September. But what happens next? According to Altcoin Vector, the market stage has moved from Ethereum to lower cap Altcoins. This is a signal that fades interest in the broader Altcoin sector based on past patterns. This shift has often returned to Bitcoin.
“But this is not the big picture. Once the accumulation process is complete, the phase may return to ETH. Compression may be built and ETH may be set to the next leg,” claimed Altcoin Vector.
What is the difference between the Altcoin season in September?
Amidst the frenzy of the Altcoin season, analysts note that the September rally comes with clear dynamics. Simon Dedic, founder of MoonRock Capital, warned that it was getting excited along with legitimate gatherings, along with speculative tokens with ratings and questionable volumes.
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“We’re in AltSeason, but scams are the hardest. Tokens like Myx and IP are clearly well-run, low-burning/high-FDV extraction plays. And there are coins like TDCCP that you’ve never heard of before, but trade with absurd ratings on a ton of volumes.
DEDIC added that while it will be very profitable for the coming months, the scheme is equally plagued by its attention.
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In particular, market veterans emphasize that the 2025 environment is not the same as past cycles. Gareth Soloway observed that today’s “Altcoin Bull Market” has moved from Altcoins to small-caps.
“A recipe for daily gains over 1000% is to buy Altcoin and claim it will become a leader in reserve currency or use cases. First up is BMNR, yesterday October, today’s CWD. It was crazy,” Soloway said.
So, the spike in Altcoin season indexes, a decline in Bitcoin advantage, and technical setup suggest that Altcoin Rally may be ongoing. But speculation and fraud are also on the rise, so this unique cycle requires both optimism and attention.
