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Ethereum has surged past the $4,200 level, fueling speculation that a new all-time high could be just days away. The move comes amid growing bullish trend across the altcoin market, with experts eyeing Bitcoin’s declining dominance as a signal that altcoins may take the lead in the short term.
Bitcoin Dominance Drops: A Green Light for Altcoins
Bitcoin’s market dominance, which measures its share of the total crypto market capitalization, is hovering between 60.5% and 61%. This zone is seen as critical support, and a break below could open the door for altcoins to outperform.
Analysts say a decisive close under this level, particularly on the three-day chart, would confirm that an “altcoin season” is underway, a scenario that historically benefits Ethereum the most.
Important Resistance Zone in Sight
ETH has now converted a major resistance range between $3,900 and $4,100 into support. However, confirmation of turning this range into a solid support level would give Ethereum the technical foundation to challenge its previous peak near $4,900. If momentum holds, ETH could make that move in a matter of days rather than weeks.
Watching for Short-Term Pullbacks
The daily Relative Strength Index (RSI) is showing signs of a possible bearish divergence — a technical signal that can sometimes precede short-term corrections. A brief pullback to retest lower support levels isn’t out of the question before Ethereum attempts another major leg up.
The Bigger Picture
Ethereum’s breakout is being supported by a favorable macro backdrop for crypto. Institutional interest is growing, layer-2 scaling solutions are gaining adoption, and Ethereum’s role in decentralized finance (DeFi) and NFTs remains strong. Combined with weakening Bitcoin dominance, these factors show that the current rally might just be the start of a bigger move.