Altcoin Market Rides Q4 Bullish Narrative Despite Ethereum Bear Trap Risk

The altcoin market is still heavily betting on gains in the coming quarter. This bullish argument seems less far-fetched after Q3's 35% rally in TOTAL2, and the Altcoin Season Index closed Q3 around 61.

This setup keeps the broader altcoin rally narrative alive heading into Q4. Analysts are now expecting a bigger altcoin move to happen based on the historical technical setup, with the index having already broken out sharply above 50, recording six consecutive weeks of higher highs.

Ethereum [$ETH] is naturally at the forefront as the largest altcoin. However, $ETH/$BTC started October by encountering resistance around 0.03, decreasing over 2.33% from its early-September peak of 0.033. Unless $ETH/$BTC can break above this level, capital rotation into Ethereum may continue to be limited.