The digital asset market is showing early signs of a potential shift in momentum toward alternative cryptocurrencies. A technical analysis of the total crypto market cap (excluding Bitcoin) reveals a classic “cup and handle” formation — a bullish pattern that often precedes continued upward movement after a consolidation phase.
Although the index tracking altcoin dominance hasn’t yet confirmed a full breakout, its values are rising rapidly. Over the past 24 hours, several major altcoins have gained significantly, while Bitcoin has dipped slightly.
Growing Demand for Ether
Reserves of Ether on one major platform serving institutional players are reportedly nearing depletion, pointing to elevated demand from large-scale investors. Despite strong buying interest and rising prices, Ether remains inflationary — its annual supply is increasing by around 0.69%. This may suggest relatively low on-chain activity.
Nonetheless, the asset surged over 9% in a single day, surpassing the $3,400 mark. Supporting this trend is a record-high open interest in Ether futures, exceeding $50 billion.
Bullish Momentum Persists
Short-term investor behavior indicates further growth potential. A key indicator measuring unrealized profits among short-term holders (STH) shows that current values remain below levels that have historically triggered profit-taking and pullbacks.
Specifically, each time the STH metric reached around 1.35 — equivalent to a 35% unrealized gain — the market saw short-term corrections. Currently, the indicator sits closer to 1.15, suggesting more room for upside.
Notably, the realized price for short-term holders recently exceeded $100,000 for the first time in Bitcoin’s history — and even surpassed $102,000 shortly after.
Early Investor Activity Increases
Recent analysis shows a nearly 3% increase in Bitcoin held by long-standing participants — rising from 4.77 million to 4.91 million coins. This trend may indicate a return of capital to the market, helping to fuel recent price momentum.
However, analysts also caution that Bitcoin’s price is approaching historically overheated zones, which could bring increased volatility or temporary cooling in the near term.
