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

When Bitcoin is in the headlines, the entire crypto market is closely watching. But behind Bitcoin's luster lies a familiar, recurring story 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 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, demonstrating new strength.

More importantly, Ethereum recently broke through the resistance level of $4000, which had limited its price for several months. This is not a tentative breakthrough - but 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 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 strong driving factors.

Institutional Recognition

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

The trading volume is enormous - exceeding $120 billion in just a few months - with a steady influx of funds. This is not just retail speculation; pension funds, wealth management companies, and corporate funds 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 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 amount of ETH held by enterprises soared 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

A broader economic backdrop is also at play. With the Federal Reserve hinting at possible interest rate cuts 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 we look at the big picture, the rise of Ethereum is not surprising - it fits the pattern we have seen multiple 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.
• Stage Three - Altcoin Season: As ETH rises, small altcoin seasons follow - usually bringing greater returns than BTC and ETH.

We saw this kind of situation in 2017 and 2021. In each case, the rise of Ether marked the beginning of a broader altcoin season frenzy. Now, a similar sequence seems to be forming.

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

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

• Decentralized Finance (DeFi) - Tens of billions of dollars in transactions, lending, and yield farming occur daily on Ethereum.
• 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 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.

5 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%.
• Decline of BTC dominance: Bitcoin's share in the total market capitalization of the crypto market is declining - this is an early sign of capital rotation.
• Altcoin Season Index rises: The index tracking the strength of the 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 may trigger a chain reaction of altcoin season - historically, this often leads 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 US or EU regulators take action regarding staking, DeFi, or the security status of Ethereum, momentum may slow.
• 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 - as these drivers remain strong.

7. Why this time might be bigger

Ethereum's previous breakthroughs occurred before institutional adoption on a scale like 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's.

Now, the fundamentals are in line with the cyclical pattern:

• Institutional capital inflow is sustainable rather than speculative.
• Through staking, ETH has a yield component that allows it to compete with traditional yield products.
• The clarity of regulation regarding stablecoins has strengthened the fundamental use cases of Ethereum.

This combination may make Ethereum's next wave of growth more sustained than in the past—and possibly stronger.

8 Guide for Strategic Investors

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 Acceleration: It's Happening - ETH breaks through years of resistance and attracts institutions.
• Altcoin season rotation: Follow the further breakthrough of ETH against BTC (ETH/BTC ratio rising), this is the green light signal for altcoin season.
• Selective positioning: During altcoin season, the highest quality projects usually perform well first, then liquidity flows towards riskier assets.

For investors who already hold Ether, the current environment supports patience and confidence. For traders, following Ether's dominance and the ETH/BTC ratio can provide clues for entry into 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 is that Ethereum's breakthroughs are 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.