Altcoin Season Index Hits 71 as Ethereum and TOTAL3 Signal Breakout

The Altcoin Season Index has jumped to 71, moving closer to the 75 level that typically signals the start of altseason. , when this threshold is crossed, altcoins have outperformed Bitcoin in sharp sector-wide rallies.

On-chain analytics platform Santiment reported rising trader fear over the last two weeks, with conversations tilting toward selling, market crashes, and bear scenarios.

However, Santiment noted that markets often move contrary to crowd expectations, meaning that widespread fear could be a contrarian signal of strength.

Analysts believe that Ethereum (ETH) as a key driver of the next market phase. Market strategist Michael van de Poppe emphasized that ETH’s performance relative to Bitcoin is an important indicator.

ETH still has ground to regain before stability, but van de Poppe believes the token is nearing the end of its corrective phase, a setup that could fuel stronger altcoin performance across the board.

Bitcoin dominance has fallen to 57.4%, down nearly 12 percentage points from its June peak of 66%. This marks the third straight month of decline, signaling that capital is rotating out of Bitcoin and into altcoins.

Historically, sustained drops in Bitcoin dominance have often been followed by explosive altcoin rallies, as traders seek higher returns outside BTC.

The TOTAL3 market cap chart (crypto market cap excluding Bitcoin and Ethereum) is also bullish according to Global Macro Investor founder .

Pal shared a chart, showing a large ascending triangle pattern forming since 2022. The structure typically signals an imminent breakout.

Currently sitting at $1.09 trillion, TOTAL3 is testing long-term resistance near $1.25 trillion. A successful breakout above this level could unleash a powerful rally across the altcoin sector.

Pal highlighted that the chart’s setup resembles the conditions seen ahead of the 2020–2021 bull run, when TOTAL3 skyrocketed from under $100 billion to over $1.7 trillion within a year.