Ethereum’s 2020 Bull Signal Returns: Is This the Start of Altseason?

Ethereum's price action is flashing a familiar pattern—one that last appeared before the 2020 altcoin explosion. Traders are buzzing: could history repeat?

Breaking Down the Signal

The ETH chart is mirroring its pre-pump behavior from five years ago, when altcoins went on a tear. This time, though, the stakes are higher—institutional money's lurking, and retail FOMO hasn't even kicked in yet.

Why This Matters Now

With Bitcoin dominance wobbling and DeFi protocols sucking up liquidity like Wall Street vacuumed up PPP loans, the conditions are ripe for an altcoin surge. Ethereum's network upgrades have quietly fixed the gas fee nightmares that plagued the last cycle.

The Cynical Take

Of course, your average crypto 'analyst' will claim every sideways move is 'accumulation' and every 5% pump is 'the big one.' But this pattern? It's got the charts guys actually shutting up and pointing.

What's Next

Watch for ETH to hold above critical support. If it does, the alts might just drag Bitcoin's boring old store-of-value narrative kicking and screaming into another speculative frenzy.

Ethereum price has returned to a technical level last seen before the 2020 rally, raising the prospect of a fresh altseason. At the same time, the TOTAL3 chart, which tracks the crypto market excluding Bitcoin and Ethereum, shows a reversal pattern forming below resistance.

Analysts are closely monitoring Ethereum’s trend and TOTAL3’s structure as altcoins begin outperforming Bitcoin again. With the top altcoin holding key support and inverse head and shoulders visible across the broader altcoin market, technical signals suggest a turning point.

Ethereum Price Tests 50 MA Level Linked to Past Altseason

Prominent analyst Merlijn The Trader has noted that ethereum is retesting the 50-week moving average, a level that previously acted as support in early 2020.

Chart comparisons showed this same moving average triggered a large upward move, initiating the last major altseason.

Later on, the top altcoin was sitting at 50 MA at that point, and then followed with a galloping price performance above the one-thousand-dollar mark.

In 2025, Ethereum will again interact with the same support zone. The structure is nearly identical in slope and timing. The current price action has brought Ethereum back to this moving average, where buyers are starting to appear.

Technical traders follow the level of the 50 MA with keenness. A stronghold implies prospective backing and further continuation of beneficial trends. Ethereum’s performance above this level could indicate readiness for further upside momentum.

Ethereum price current movement is also notable for its relative strength. The ETH/BTC ratio has improved slightly in recent weeks, reflecting higher demand for Ethereum versus Bitcoin. This rotation often precedes wider altcoin participation.

TOTAL3 Forms Inverse Head and Shoulders

TOTAL3 has constructed an inverse head and shoulders pattern of long-term as outlined by Moustache.

The head was created later in 2022, whereas the right shoulder was created during the last half of the year. The neckline trades at important resistance points, which have been maintained since 2021.

The chart pattern shows a textbook reversal structure. The shoulders are symmetrical with left and right shoulders, and the head makes a distinct low. Market cap has stayed down-squeezed on the neckline and keeps developing higher lows.

This setup mirrors the TOTAL3 structure from 2020. At that time, a similar tendency erupted after an episode of consolidation.

The altcoins’ bull run and market-wide uptrend began shortly after that breakout, with the growth taking multiple months.

In case TOTAL3 breaks the neckline, this will suggest that the bullish movements are real. The trend has now been building up over a long period, thus there WOULD be greater movement post-breakout should it turn out to be so.

Altcoins Show Strength Against Macro Uncertainty

Furthermore, Michaël van de Poppe highlighted the strength of altcoins, especially Ethereum, relative to Bitcoin.

He further cited the macro environment, which he said Gold is trading close to a breakdown of $3,360. Any drop below this point will lead to a change in risk sentiment in the world.

Ethereum has continued to show strength despite macro pressures. Price is in a steady support area, and volume surges occur during formative reactions. These aspects are in line with market accumulation and trend continuation stages.

According to Van de Poppe, altcoins have not been volatile during the past period. This implies that buyers wish that they could accumulate at current levels. Ethereum’s performance continues to lead the group, a sign often observed at the beginning of altseason periods.

Support regions have repeatedly attracted interest in dips. The market has taken those zones seriously, and nothing serious broke next. This behavior reinforces expectations for a potential MOVE higher.

Ethereum Price Breakout Timing Depends on Confirmation

Even though the technical structures are developing, confirmation of the same will be at the resistance price behavior. Ethereum must sustain above the 50 MA. TOTAL3 must break the neckline with volume support.

In the case that both events happen, it would be in line with the breakout scenario that has existed during previous altcoin cycles. Ethereum’s positioning remains central to this thesis as altcoins usually coincide with ETH regaining dominance.

TOTAL3 also plays a role. The formation suggests market-wide positioning for growth. The realization of confirmation would mean that investors have become confident in the sector.