For Lombardo the conditions for an Altseason are not given.
Anyway, there are already indications that capital rotated towards low capitalization cryptocurrencies.
Before asking if we are entering a new Altseason, it is important to clarify what we mean with that term.
Although there is no unique definition, one of the criteria that has the most consensus is that this phenomenon It occurs when at least 75% of the 50 main cryptocurrencies exceed Bitcoin’s performance (BTC) during the last 90 days.
According to the explorer Blockchaincentercurrently 41% of digital assets exceed BTC’s yield, so we are not yet in an Altseason.
In this context, the big question that appears in the market is if The rebound in Ether’s price (eth), the native cryptocurrency of Ethereum, could be the spark that starts this phenomenon.
As cryptootics is reporting, ETH is quoting at levels not seen since February 2025, due to the growing institutional interest. More and more companies are accumulating ETH as a reserve asset to generate extra income through the staffing.
This renewed prominence has fed the optimism of those who see in ETH a promoter of a new bullish cycle for cryptocurrencies. Historically, the good performance of the Ethereum currency was the prelude to periods of increases in the price in other projects of lower capitalization.
However, not everyone shares the same vision. One of them is Dominic Lombardo, market analyst, who He thinks that the ETH rebound “does not guarantee an Altseason” because “the current upward cycle could behave differently from the previous ones.” In that sense, he proposes:
“I think the recent increase in the price indicates that ETH is normalizing its place as a digital silver, as well as BTC is for gold.”
Dominic Lombardo, market analyst.
This is because ETH has the ability to rise in price for its own foundations, because it is what feeds all the machinery of the Ethereum ecosystem, which goes from intelligent contracts to decentralized applications (DAPPS) and other services. While many cryptocurrencies do not have clear cases of use, nor support, nor the security of Ethereum.
Lombardo also mentions that the United States Federal Reserve (FED) continues with its monetary policy to keep interest rates high. This is something that limits the growth of risk assets such as low capitalization cryptocurrencies.
When the interest rate is high, the cost of indebtedness is also greater and investors choose to place their holdings in assets considered safe.
On the other hand, the analyst points out: “My own risk indicators within the financial markets show that we are close to a local maximum and near the speculation peak (although not as high as in 2021). I am seeing a confluence with other markets, including cryptocurrencies.”
To sustain its analysis, it shares the graph that shows the level of activity of the premium in the perpetual contracts of the main Altcoins (orange areas), from August 2022 to July 2025, compared to the price of ETH (black line).
The horizontal blue line indicates the average monthly level of this premium, around 32.9 million dollars.
If the cousin is high, it means that traders are paying more for maintaining long -signed positions, which usually indicates a lot of optimism or market speculation.
When there is a high level of leverage, the market becomes very sensitive to small price variations. If the value low, even a bit, many leverage positions are automatically settled, causing fast and chain falls.
Lombardo also proposes to look at BTC whales movements to Exchange (orange bars), which usually anticipate imminent correction. This questions the sustainability of an Altseason, at least in the short term. “Remember: cryptocurrencies are tied to Bitcoin’s hip,” he remarks.
Here you have to clarify that not everyone believes that whale movements anticipate a price correction. On the contrary. As Cryptonoticias, Cryptoquant specialists, an analysis firm has reported ON-CHAINThey argue that “this capital rotation could also boost an Altcoins rally, since the demand moves to alternative assets.”
Analysts point out that we are facing a classic market rotation cycle, which It occurs when money flows from BTC to Ether and finally towards lower capitalization projects. This dynamic is already beginning to be evidenced: cryptocurrencies such as XRP and BNB, the native token of the Exchange BinanceThey recently reached their historical maximums (ATH).
Although Lombardo argues that the conditions for an Altseason are not yet, some indicators suggest that the market could soon approach the threshold of 75%, which would begin a wave of enthusiasm and euphoria among investors.
