Spot Ethereum ETF Launch Signals Start of Altcoin Season, Analysts Insights

• Altcoin corrections are normal post-surge, with a 25% drop being healthy despite retail investor concerns.
• Historical patterns suggest altcoins often rally significantly after stagnation and investor fatigue.
• Strategic investments in altcoins ahead of the ETH ETF launch anticipate a major reversal and market cap increase.

The launch of the Spot Ethereum ETF marks the beginning of Altcoin season, presenting a golden opportunity for investors, as highlighted by Crypto Rover, founder of cryptoseacom. As the market prepares for this significant event, it’s essential to understand the dynamics of altcoins and the patience required during market corrections. 

As further noted by Doctor Profit, an analyst, between October 2023 and March 2024, the altcoin market experienced a tremendous surge, climbing from $300 billion to nearly $800 billion in market cap. This 150% increase in just five months was followed by a healthy correction, bringing the market cap down by 25% to around $550 billion. Such corrections are normal, yet many retail investors struggle with them.

On November 30, 2020, Bitcoin reached a new all-time high, doubling from $10,000 to $20,000 within 30 days. During this Bitcoin surge, altcoins remained relatively stagnant, causing investors to lose hope. 

However, by January 4, 2021, altcoins embarked on a massive rally, tripling market cap within a month. This pattern of sideways movement followed by explosive growth is similar to what the market sees. now. Investor fatigue, especially with altcoins, often precedes significant gains.

Given this context, strategic investments in select altcoins are being made. For instance, altcoin orders are placed at the following prices: SAND at $0.22, STX at $1.48, ARB at $0.61, IMX at $1.22, ETH at $2,890, OP at $1.58, SEI at $0.28, FRONT at $0.85, JASMY at $0.029, OMNI at $9.21, ZK at $0.17, RUNE at $3.45, IO at $2.70, TON at $5.50, NOT at $0.10, and BNB at $396. These orders are strategically placed 3-5% higher or lower to avoid missing out due to market maker manipulation.

The next pivotal event is the ETH ETF launch on July 2. A significant pump on that day is unlikely, mirroring the BTC ETF launch. Instead, a sideways or bearish trend for altcoins is expected over the next few weeks. A significant reversal is anticipated by mid-July, signaling the start of a new altcoin run. 

Currently, altcoins are low, and only a few will succeed. The market could reach $550 billion and bounce, but this is likely with bullish sentiment. More likely, a drop to the $480 billion region, testing the Weekly Moving Average of 200 and bouncing from there, will occur. 

This scenario represents a 15% market cap drop, potentially causing mass panic and exhaustion, fulfilling the promise of altcoin capitulation and the start of a reversal.