Ethereum's Breakthrough: History Repeats Itself, Opening a "Epic" New Cycle

When Bitcoin makes headlines, the entire crypto market is closely following. But behind Bitcoin's brilliance lies a familiar tale for seasoned investors: Ethereum will eventually take center stage—and when it does, other altcoin markets often follow.

Now, this story is being played out again.

1. Data does not lie

In the past month, the price of Ethereum has surpassed $4700—its highest level since the end of 2021. It has risen by more than 30% in the past seven days, outperforming Bitcoin, showing new strength.

More importantly, Ethereum has recently broken through the resistance level of $4000, a price point that had restricted its price for several months. This is not a tentative breakthrough — rather, it is a decisive action supported by a surge in trading volume and institutional participation. Technical analysts are now discussing target price levels in the range of $6000 to $8000, if the current momentum continues.

2 Why is Ethereum skyrocketing now?

The rise of Ethereum is not just following in the footsteps of Bitcoin - it has its own set of powerful driving factors.

Institutional recognition

The biggest advancement for Ethereum in 2025 is the introduction of spot ETH ETFs in the US market. Giants like BlackRock, Fidelity, and Grayscale now offer direct investment opportunities in ETH.

The trading volume is enormous—exceeding 120 billion USD in just a few months—with a steady inflow of funds. This is not just retail speculation; pension funds, wealth management companies, and corporate pools are incorporating Ether into their portfolios.

Stablecoin regulation turns favorable

The GENIUS Act passed by the United States provides clear guidelines for stablecoins, which has a direct impact on Ethereum.

Why? Because most stablecoins—USDT, USDC, etc.—are primarily issued on Ethereum. The adoption of stablecoins has driven the trading volume of Ethereum, increased the demand for gas, and solidified its position as the global settlement layer for capital flows.

Demand for corporate balance sheets

Small and medium-sized listed companies are quietly adding Ethereum to their balance sheets. According to Reuters, the amount of ETH held by enterprises surged from 116,000 ETH at the end of 2024 to nearly 1 million ETH by mid-2025—worth approximately $3.5 billion.

These companies are not just buying for price appreciation—they are earning an annual yield of 3-4% by staking ETH, turning it into a productive asset.

macroeconomic tailwind

A broader economic background is also providing support. As the Federal Reserve hints at a possible rate cut later this year, risk assets—from the stock market to cryptocurrencies—are gaining support. Lower interest rates make yield-generating digital assets like staking ETH more attractive compared to bonds or savings accounts.

3. Cycle: Bitcoin leads, Ethereum follows, altcoin season catches up

If you look at the big picture, the rise of Ethereum is not surprising - it aligns with the patterns we have seen many times.

• Phase One - Bitcoin Dominance: Bitcoin rises first, attracting institutional funds and mainstream attention.
• Phase Two - Ethereum Breakthrough: Once Bitcoin stabilizes, funds will shift to ETH. The percentage increase of ETH will surpass that of BTC.
• Phase Three - Altcoin Season: As ETH rises, small altcoin seasons follow - usually bringing larger returns than BTC and ETH.

We have seen this situation in both 2017 and 2021. In each instance, the rise of Ether marked the beginning of a broader altcoin season. Now, a similar sequence seems to be forming.

4 Why is Ethereum's role so critical in the cycle?

Ethereum is not just "another altcoin season." It is almost the infrastructure for the most important use cases of cryptocurrency:

• Decentralized Finance (DeFi) - Billions of dollars in transactions, lending, and yield farming take place on Ethereum every day.
• NFT and Digital Assets - Ethereum remains the largest NFT market.
• Stablecoins and payments - Most stablecoin transfers are conducted on the Ethereum network.
• Layer 2 ecosystem - Networks like Arbitrum, Optimism, and Base settle onto Ethereum, bringing more base layer security fees.

When ETH rises, it sends a signal: the market is ready to take on more risk beyond Bitcoin.

5 Are we entering altcoin season?

Several indicators suggest that the answer is affirmative.

• ETH outperformed BTC: In the past month, ETH rose by about 54%, while Bitcoin only increased by about 10%.
• BTC's dominance is declining: Bitcoin's share of the total market capitalization in the crypto market is falling - this is an early sign of capital rotation.
• Altcoin Season Index Rises: The index tracking the strength of altcoin season relative to Bitcoin has risen from the 20s to the 30s, showing an upward trend.

If this pattern continues, the momentum of Ethereum could trigger a chain reaction of altcoin season - historically, this has often led to the most explosive movements in the crypto market.

6 What could interrupt the rise

Despite the bullish outlook, it's worth remembering that nothing rises in a straight line.

• Regulatory variables: If U.S. or EU regulatory agencies take action regarding staking, DeFi, or the security status of Ethereum, momentum may slow down.
• Macroeconomic shocks: Unexpected inflation, geopolitical tensions, or sudden shifts in Federal Reserve policy may suppress risk appetite.
• Profit-taking: After a significant rise, traders often take profits, leading to a sharp but temporary pullback.

For long-term investors, the key is to separate short-term fluctuations from structural drivers—because these drivers remain strong.

7. Why this time might be bigger

The breakthrough for Ethereum occurred before the institutional adoption of this scale today. There were no spot ETFs in 2017 and 2021. Corporate balance sheets are not actively accumulating ETH. The settlement amount for stablecoins is only a fraction of today.

Currently, the fundamentals are consistent with the cyclical patterns:

• Institutional capital inflows are sustainable, not speculative.
• By staking, ETH has a yield component that allows it to compete with traditional yield products.
• The regulatory clarity of stablecoins has strengthened the fundamental use cases of Ethereum.

This combination may make the next wave of Ethereum's rise more enduring than in the past—possibly even stronger.

8 Strategic Investors' Operation Guide

If history repeats itself, here are the sequences to follow:

• Bitcoin Surge: We have already seen - BTC breaking through $120,000 has laid the foundation.
• Ethereum Surge: It's Happening - ETH Breaks Years of Resistance and Attracts Institutions.
• Altcoin season rotation: Follow the further breakthrough of ETH against BTC (the ETH/BTC ratio is rising), which is a green light signal for the altcoin season.
• Selective positioning: During the altcoin season, the highest quality projects usually perform well first, and then liquidity flows towards riskier assets.

For investors who already hold Ether, the current environment supports patience and confidence. For traders, following ETH's dominance and the ETH/BTC ratio can provide clues for entering smaller assets.

The rise of Ethereum is not an isolated surge — it is part of a familiar market rhythm: Bitcoin leads, Ethereum follows strongly, and then other altcoin markets awaken.

The difference in 2025 lies in the fact that Ethereum's breakthrough is supported by real adoption, institutional infrastructure, and clear regulatory victories – not just speculative hype. This is a foundation strong enough to support a larger trend.

If history has any guidance, the fireworks show may have just begun.