Is it finally time?
Is this the rotation we’ve been waiting for?
Is Ethereum (ETH) about to melt faces?
Let’s be clear: Bitcoin (BTC) has dominated the crypto conversation for years.
And for good reason – it’s the king. But leadership doesn’t last forever.
Markets rotate.
Trends evolve.
And, from where I’m sitting, Ethereum is making a real case for the throne.
If Ethereum were to reach a $1 trillion market cap, that would put the price north of $8,200, assuming the current circulating supply of approximately 120.73 million ETH.
That’s nearly 3x from here.
This isn’t some moonboy fantasy.
It’s a math problem.
It’s a money-flow problem.
And, when you look under the surface, you can see the signs starting to flicker.
Bitcoin Dominance Is Rolling Over
For the first time in a while, Bitcoin Dominance looks vulnerable.
You can feel it.
BTC’s stalling out. But the altcoins, especially ETH, are beginning to flex.
We’ve seen this before. Bitcoin leads, then passes the baton.
The altseason – a term the kids use to refer to a market environment where altcoins outperform Bitcoin – that follows is one of the most explosive phases in any crypto bull market.
The setup here is textbook:
If the ratio of Ethereum vs. Bitcoin has bottomed, then we’re likely in the early stages of a brand-new altseason.
And yesterday’s price action certainly suggests that this ratio is near a bottom.
We saw the biggest one-day change since 2021.
These massive surges in momentum tend to mark the beginning of new uptrends.
A year from now, we could look back and say, “May 8 was the start of the altseason.”
This is what we call an “initiation thrust.”
Is Ethereum Going to $1 Trillion?
I think so…
And to be honest with you, I don’t think that’s asking for much.
Look at the uptrend from the prior cycle.
Ethereum rallied 4,400% in a virtually straight line.
To reach a market capitalization of $1 trillion, the price of ETH would only have to rise to $8,200, from the current levels around $2,300.
That’s less than 300% away from the current price!
If we’re in a new altseason, Coinbase (COIN) is going to skyrocket.
We like to think of COIN as a play on crypto as a whole and Microstrategy (MSTR) as a play on Bitcoin specifically.
If we’re entering a brand-new altseason, we want to own stocks like Coinbase that will benefit from surges in the smaller coins.
The company reported earnings last night and missed expectations across the board.
If the price can rally today despite that, I will likely buy more.
Why?
That’s the market’s message to me that it doesn’t care about the “bad news.”
It’s just looking forward to altseason.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs