Ethereum Outpaces Bitcoin in Q3 as Altseason Begins

Key Insights:

• Blockchain Center’s Altseason Index has surged above 35, showing early signs of altcoin market outperformance.
• Ethereum price gained +26.45% in Q3 2025, outperforming Bitcoin +9.95%, based on Coinglass quarterly data.
• Altcoin market cap (TOTAL3) is breaking out from a bullish cup-and-handle pattern, just 18% below all-time highs.

Ethereum price outpaced Bitcoin in the third quarter of 2025, signaling a shift in market sentiment. According to CoinGlass data, ETH gained over 26%, while BTC rose just 9.95%.

This outperformance triggered early signs of altseason, backed by rising altcoin metrics and a breakout in the broader market capitalization index.

Altseason Gains Momentum as Ethereum Dominates BTC

CoinGlass data showed that Ethereum gained +26.45% in Q3, outperforming Bitcoin’s +9.95%. The strength of the ETH/BTC pair pointed to capital rotation from Bitcoin to altcoins.

Subsequently, this trend indicated a rotation of capital towards Ethereum and other altcoins. Such relative performance has historically characterized the early phases of an altcoin market cycle.

Importantly, Bitcoin remains a source of critical portfolio stability and a leading store of value. On the other hand, the relatively greater exposure to the overall crypto ecosystem seems to be fueling the current Ethereum run. As of mid-July, ETH broke above key moving averages, strengthening its near-term outlook.

Altseason Index Suggests Market Shift

More so, the Altcoin Season Index published moved above the 35 level, after trending below 30 for much of the year. The index is designed to track whether altcoins are performing better than Bitcoin over a trailing 90-day window. A reading above 75 indicated a full altcoin season, while a reading below 25 suggested Bitcoin was dominant.

Additionally, the recent climb suggested altcoins are starting to gain traction again across the market. Data shows multiple large-cap and mid-cap tokens registering double-digit returns in recent weeks.

Besides, Ethereum breakout had taken a leading position in the trend, as the volume of trade and market capitalization of other tokens also rose. Altcoin Season Index, temporarily not at full cycle levels, but progressively improving weekly, strengthened the building altcoin rotation.

Altcoin Market Cap Approaches Key Threshold

TOTAL3, the cryptocurrency market capitalization index, which includes all cryptocurrencies except Bitcoin and Ethereum, was also near a breakout zone. Market analyst Crypto JelleNL noted that the index recently broke out of a cup-and-handle pattern, typical of long-term bullish continuation patterns.

TOTAL3 was approximately 18% below its previous all-time high. The breakout from the handle formation suggested renewed strength in the altcoin segment, supported by increased liquidity and renewed investor participation.

The market structure, visible on the multi-year chart, showed a rounded bottom that began forming in early 2022 and has steadily climbed since. A sustained break above the $1.05 trillion resistance area would validate the pattern and boost the funding rate in the altcoin market.

ETH/BTC Rebound Fuels $10K Ethereum Speculation

Further supporting an altseason, another analyst, Mister Crypto, pointed to a potential reversal in the ETH/BTC pair. He suggested that if the pair returns to previous cycle highs, Ethereum price could reach $10K. This would require Ethereum to regain market strength relative to Bitcoin over the coming months.

Moreover, the ETH/BTC monthly chart showed the pair bouncing from a long-standing support zone near 0.05 BTC. An arrow pointed toward a resistance zone between 0.085 and 0.10 BTC, which has been a major barrier since 2021. A move back into this zone would reflect a broad rotation into altcoins.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.