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

Author: CryptoTalk Compilation: Vernacular Blockchain

When Bitcoin grabs the headlines, the entire crypto market is closely watching. But behind the brilliance of Bitcoin, there is a familiar recurring story known to seasoned investors: Ethereum will eventually take the spotlight - and when it does, other altcoin markets often follow.

Now, this story is being replayed again.

01 Data doesn't lie

In the past month, the price of Ethereum has surpassed $4700 - the highest level since the end of 2021. It has risen 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 constrained its price for several months. This is not a tentative breakout—rather, it is a decisive move 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, should the current momentum continue.

02 Why is Ethereum soaring now

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

Institutional Recognition

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

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

Stablecoin regulation turns favorable

The GENIUS Act passed by the United States provides clear guidelines for stablecoins, which directly impacts Ethereum.

Why? Because most stablecoins—such as USDT, USDC, etc.—are primarily issued on Ethereum. The adoption of stablecoins drives Ethereum's trading volume, increases the demand for gas, and solidifies 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 ETH held by enterprises surged from 116,000 ETH at the end of 2024 to nearly 1 million ETH by mid-2025—worth about $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

The broader economic backdrop is also providing support. As the Federal Reserve hints at possible interest rate cuts later this year, risk assets—from stocks to cryptocurrencies—are gaining traction. Lower interest rates make yield-bearing digital assets like staked ETH more attractive compared to bonds or savings accounts.

03 Cycle: Bitcoin leads, Ethereum follows, altcoin season catches up

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

Stage One - Bitcoin Dominance: Bitcoin rises first, attracting institutional funds and mainstream attention.

Phase Two - Ethereum Breakthrough: Once Bitcoin stabilizes, funds will flow into ETH. The percentage increase of ETH will surpass that of BTC.

Phase Three - Altcoin Season: As ETH rises, small altcoin seasons follow - often bringing greater returns than BTC and ETH.

We saw this situation in both 2017 and 2021. In each case, the rise of Ethereum marked the beginning of a broader altcoin season surge. Now, the same sequence seems to be forming.

04 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 occur on Ethereum every day.

NFT and Digital Assets - Ethereum is still the main market for the largest NFT.

Stablecoins and Payments - Most stablecoin transfers occur on the Ethereum network.

Layer 2 ecosystem - networks like Arbitrum, Optimism, and Base settle on 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.

05 Are we entering the 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 Dominance Declines: Bitcoin's share in the total market capitalization of the entire crypto market is decreasing - 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 over 20 to over 30, showing an upward trend.

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

06 What Could Interrupt the Rise

Although the situation looks bullish, it is worth remembering that nothing increases 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 dampen 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.

07 Why this time might be bigger

The breakthroughs in Ethereum occurred before the institutional adoption of this scale today. There were no spot ETFs in 2017 and 2021. Corporate balance sheets did not actively accumulate ETH. The settlement volume of stablecoins was only a fraction of today.

Currently, the fundamentals are consistent with the cyclical pattern:

Institutional capital inflows are sustainable rather than speculative.

Through 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 Ethereum's next surge more lasting than before—and possibly stronger.

08 Guide for Strategic Investors

If history repeats itself, here are the sequences to pay attention to:

Bitcoin Surge: We have seen - BTC breaking through $120,000 has laid the foundation.

Ethereum Surge: What's Happening - ETH Breaks Years of Resistance and Attracts Institutions.

Altcoin Season Rotation: Focus on ETH's further breakthrough against BTC (ETH/BTC ratio 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, then liquidity flows towards riskier assets.

For investors who already hold ETH, the current environment supports patience and confidence. For traders, paying attention to 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 the other altcoin markets awaken.

The difference in 2025 lies in the breakthrough of Ethereum being 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 display may have just begun.