Ethereum Outpaces Bitcoin in Q3: Is Altseason Finally Here?

Ethereum Surges Past Bitcoin in Q3: Are We Witnessing the Dawn of Altseason 2025?

Something unusual is unfolding in the crypto markets this quarter. Ethereum is not just holding its ground against Bitcoin—it is outperforming it, reigniting debates among traders and investors about whether a new altseason is finally upon us in 2025.

After years of trailing Bitcoin and being labeled the perennial second-place asset, Ethereum’s Q3 performance is forcing the market to pay attention. This momentum is prompting a critical question across crypto circles: Has the long-awaited altcoin season officially begun, and is Ethereum leading the charge?

Ethereum Outpaces Bitcoin with Conviction

According to Coinglass data, Ethereum has logged a +21.9% return so far in Q3, compared to Bitcoin’s +13.85%. While Bitcoin’s movements have typically dictated market trends, Ethereum’s current outperformance is not just a statistical anomaly; it appears to be backed by significant technical and market structure strength.

Crypto analyst and OKX partner Ted Pillows highlighted this development on X last week, stating, “$ETH is currently outperforming $BTC in Q3. Altseason loading.” Pillows’ comment captured the growing sentiment that Ethereum’s rise could be the catalyst for a broader altcoin rally, with traders increasingly positioning themselves for potential upside in the months ahead.

Technical Indicators Signal Momentum for Ethereum

Ethereum’s daily technical indicators are also aligning with bullish sentiment. According to TradingView charts, Ethereum’s Relative Strength Index (RSI) is approaching 74—a level that typically suggests overbought conditions. However, analysts note the absence of bearish divergence, indicating the asset’s rally may still have legs.

Meanwhile, the Moving Average Convergence Divergence (MACD) for Ethereum continues to show bullish momentum, with the MACD line maintaining its upward trajectory and reflecting sustained buying pressure. Ethereum’s price is currently comfortably above the critical $3,000 psychological threshold, a level that traders see as a new support zone.

In contrast, Bitcoin has seen a period of cooling after touching a high near $123,000 earlier in the quarter. It has since pulled back to the $117,000 range, where it faces fresh resistance, while its RSI and MACD reflect a deceleration in momentum. This divergence in technicals further supports the narrative that Ethereum is currently the stronger asset in the crypto space.

Merlijn’s Roadmap: Is Ethereum Following Bitcoin’s Legendary 2020 Cycle?

A chart gaining significant attention within the crypto community comes from trader Merlijn, who suggests Ethereum’s current price movements mirror Bitcoin’s historic 2020 bull cycle. According to Merlijn’s analysis, Ethereum’s price action could be following a similar pattern:

• An 83% correction during the bear cycle

• A 342% rally post-correction

• A subsequent 63% drop

• Followed by a monumental 1,100% surge in Bitcoin

If Ethereum indeed mirrors this pattern, it could signal one of the most significant rallies in this cycle, positioning Ethereum not just as a high-potential asset but as the leading indicator for the crypto market’s direction in 2025.

Altseason 2025: From Question to Expectation

Historically, crypto markets have followed a familiar rhythm: Bitcoin leads the charge, Ethereum follows with strong gains, and then altcoins rally in what is known as altseason. However, this time, the narrative might be reversing.

Analysts from Coingabbar are already calling it: “Altcoin season may not just be coming; it may have already started with Ethereum.” With Bitcoin’s momentum stabilizing and Ethereum outperforming, the market dynamic appears to be shifting, creating opportunities for traders and investors focused on altcoins and Layer-1 projects.

Ethereum’s Market Position: From Utility Asset to Market Leader

For many years, Ethereum has been recognized primarily for its utility, powering decentralized applications, DeFi, and NFT ecosystems. Its role as the backbone of Web3 infrastructure has never been in question. However, its current price performance suggests that Ethereum may now be viewed as a market leader capable of driving broader market trends.

This shift is critical for investors seeking to understand the evolving dynamics of the crypto landscape. Ethereum’s outperformance is not only significant for its holders but also for the altcoin sector, which has often relied on Ethereum’s strength to validate broader rallies across smaller cap tokens.

What This Means for Traders and Long-Term Holders

For long-term investors, Ethereum’s current momentum signals a potential rebalancing in the crypto hierarchy. If Ethereum maintains its trajectory, it could attract new institutional interest, increasing its market dominance while breathing life into altcoins that have struggled for momentum in recent months.

For active traders, Ethereum’s lead over Bitcoin provides a valuable reference for market strength and direction. As technical indicators for Ethereum continue to flash bullish signals, traders may find opportunities to position for additional upside, particularly if Bitcoin stabilizes above its key support levels.

Risks and Considerations: Macro Factors and Market Sentiment

While Ethereum’s rally is notable, traders and investors should remain mindful of macroeconomic factors that could influence the broader crypto market. Inflation concerns, interest rate decisions by the Federal Reserve, and global geopolitical developments continue to affect investor sentiment across risk assets, including cryptocurrencies.

Additionally, altcoin rallies have historically been volatile, and while Ethereum’s current outperformance is encouraging, traders should watch for potential retracements, particularly if Bitcoin experiences sharp moves.

Conclusion: A Potential Altseason Begins with Ethereum

The data is clear: Ethereum is outperforming Bitcoin in Q3, and the crypto community is paying close attention. With technical indicators supporting continued momentum and analysts aligning on Ethereum’s leadership role, the stage may be set for a significant shift in the crypto market.

If Ethereum continues its upward trajectory while Bitcoin holds critical support levels, Q3 2025 could indeed be remembered as the quarter when altseason 2025 truly began.

Key Takeaways:

• Ethereum has delivered +21.9% returns in Q3 2025, outperforming Bitcoin’s +13.85%.

• Technical indicators (MACD and RSI) support Ethereum’s continued bullish momentum.

• Bitcoin remains stable but is showing signs of cooling after its early-year rally.

• Ethereum’s outperformance may signal the start of altseason 2025.

• Traders and investors should monitor Ethereum’s price action as a leading market indicator.

As traders adjust their strategies and long-term investors reevaluate their portfolios, Ethereum’s performance this quarter could be the catalyst for a new phase in the crypto market, redefining how altcoins are positioned in the broader ecosystem.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.