Ethereum may soon reach $5,000 as the altcoin season is activated.

A new optimism is rising as on-chain data confirms that the crypto market has officially entered the altcoin season – a period during which altcoins often record superior performance compared to Bitcoin (BTC). Although the overall market has faced downward pressure in recent days, affecting the current price movements of ETH, the fundamental indicators reveal the incredible resilience of holders.

80% of top altcoins outperform Bitcoin

According to Blockchain Center, a major altcoin season officially begins when at least 75% of the top 50 altcoins outperform Bitcoin (BTC) within three months.

New data from on-chain analysis platforms shows that 80% of these tokens have outperformed BTC over the past 90 days – a significant outperformance compared to the necessary threshold. This officially signals that the market is entering a boom phase for altcoins.

Altcoin Season Index | Source: Blockchain CenterAs the flow of money and investor attention shifts from Bitcoin to altcoin, Ethereum (ETH) also has the opportunity to benefit from this trend. The question is whether this wave of movement can trigger a strong price increase, heading towards the $5,000 mark, which experts are expecting for this altcoin.

The confidence of ETH holders and demand from institutions drive the rumor of 5,000 USD

One of the clearest signs of ETH's recovery comes from the institutional capital flowing strongly into the market. According to data from SosoValue, Ethereum ETF funds recorded a net cash flow of 639 million USD last week, a dramatic turnaround from the previous week when the market had witnessed a record outflow of 798 million USD.

Total net inflows into Ethereum ETF Spot | Source: SosoValueThis reversal indicates that institutional investor confidence is gradually being restored, reflecting a growing demand for holding ETH. This upward trend continues into the current week, with inflows reaching 360 million USD, demonstrating that major investors are still actively embracing altcoin – a signal that could drive ETH towards new high price levels as the altcoin season officially begins.

Not only that, ETH holders maintain strong confidence despite the not-so-positive short-term performance in recent sessions. This is reflected in the Holder Retention Rate (, currently at 96.13%, tracking the percentage of addresses that maintain ETH balances consecutively for 30 days. When this indicator rises sharply, it is clear that investors prioritize holding positions rather than withdrawing funds, despite market volatility.

![])https://img-cdn.gateio.im/webp-social/moments-c5be9b9144de83d1b3de993416cf9df0.webp(The holder retention rate of ETH | Source: GlassnodeThis behavior reflects long-term confidence in the potential of ETH and may be the main driver helping to push the price faster towards the $5,000 mark, especially as the crypto market enters a new altcoin season.

Breaking above 4,957 USD could trigger a rally to 5,000 USD

The stable capital flow from institutions, along with the consistent holding behavior of investors, could create momentum for ETH to end the current fall trend.

![])https://img-cdn.gateio.im/webp-social/moments-fdbb4f4c24406356e6dbfcba33cd3e2d.webp(ETH/USDT Daily Chart | Source: TradingViewIf the upward momentum continues, the price is likely to head towards the resistance level of 4,957 USD, and once this milestone is successfully surpassed, the door to conquering the 5,000 USD level will be opened.

On the contrary, if market sentiment continues to weaken, ETH may extend its fall, with the risk of dropping to 4,211 USD.

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