The altcoin season has officially kicked off! Institutional funds returning are driving Ethereum to challenge the $5,000 mark.

On-chain data shows that the crypto assets market has officially entered altcoin season, during which altcoins generally outperform Bitcoin (BTC). As funds and investors' attention shift towards Ethereum (ETH), institutional capital inflow and holders' confidence are both recovering, and the market's expectations for ETH to break through 5,000 USD are rapidly heating up.

The altcoin season has started, with funds rapidly shifting to ETH

(Source: Blockchain Center)

According to statistics from Blockchain Center, 80% of the top 50 alts by market capitalization have performed better than BTC in the past 90 days, far exceeding the 75% initiation threshold, which means that the altcoin season has officially begun.

In this context, ETH, as the second largest Crypto Asset by market capitalization, is becoming the core beneficiary of capital migration. The market generally believes that this wave of capital shift could bring strong rebound momentum to ETH, driving it to challenge the $5,000 mark.

Ethereum ETF fund inflow has significantly rebounded

(Source: SoSoValue)

Data from SosoValue shows that last week, Ethereum ETF net inflows reached $639 million, contrasting sharply with the record net outflow of $798 million in the previous week, indicating a clear reversal in capital flows.

This trend continued into this week, with inflows reaching 360 million USD, indicating that institutional investors are increasing their holdings of ETH. Analysts point out that with the continuation of the altcoin season, this capital inflow could become an important catalyst for driving ETH prices to new highs.

High holder retention rate, demonstrating long-term confidence

(Source: Glassnode)

Despite the recent short-term pressure on ETH prices, holders' confidence remains strong. Glassnode data shows that the retention rate of ETH holders has reached 96.13%, meaning that the vast majority of wallets have maintained their positions unchanged over the past 30 days.

This high retention rate reflects investors' recognition of the long-term value of ETH, and it reduces the risk of short-term selling pressure, providing a stable foundation for price upward movement.

Key Technical Level: $4,957 is the breakout point

(Source: Trading View)

From a technical analysis perspective, the current main resistance level for ETH is at $4,957. Once the price effectively breaks through this level, market sentiment is expected to heat up quickly, driving ETH to challenge the $5,000 mark or even higher targets.

On the contrary, if market sentiment weakens, ETH may test the support level of $4,211, and the short-term trend will depend on capital flows and the macro market environment.

Conclusion

With the full launch of the altcoin season, funds are accelerating from BTC to ETH. The dual support of institutional capital inflows and holder confidence creates favorable conditions for ETH to challenge the $5,000 mark. Investors should closely monitor ETF fund flows and on-chain data changes, as these signals often precede the next market wave. For more real-time market updates and in-depth analysis, please follow the official Gate platform.