AltCoin Season 3.0 Set to Explode In June: ETH To Lead The Charge Again?

A major shift may be brewing across the crypto market as multiple indicators suggest the early stages of altcoin season 3.0.

Capital appears to be rotating away from Bitcoin and into Ethereum and the broader altcoin market. With historical patterns repeating and June’s recurring cycle window reopening, all signs point to a renewed breakout phase led by ETH dominance and sustained altcoin performance.

Altcoin Season 3.0 Signals Strength in Ethereum

The OTHERS/BTC ratio, a broad measure of altcoin strength versus Bitcoin, is flashing the same pattern that preceded previous altseasons in 2018 and 2021. Sensei stated that the ratio is bouncing off a multi-year ascending support line, creating a third possible surge zone.

Prior action outside of this level triggered violent alt rallies, and technically, the stage is now set to happen again.

Simultaneously, Ethereum is beginning to decouple from Bitcoin. CryptoWZRD pointed to a multi-year cup-and-handle formation that was occurring, and ETH was ready to break out upward.

Historically, altseasons begin when ETH leads the breakout. As Ethereum dominates, liquidity usually distributes through Layer 1s, followed by mid-caps, and finally low-cap tokens.

Not only is this a technical rotation, but a behavioral one, where large wallets and institutional capital prefer to front-run these moves.

The fact that the ETH/BTC pair is testing the neckline while the momentum is building up suggests that money is on the move.

ETH/BTC volume is increasing, and Bitcoin dominance has stagnated below the resistance. These conditions have historically favored altcoins.

Altcoin Season Index and June 2025 Cycle Point to Breakout

Further confirmation comes from the Altseason Index, analyzed by Alphpractal. This index measures how many altcoins are outperforming BTC over the last three months.

When 75–80% of altcoins surpass BTC performance, it marks the start of what traders call “Altcoin Euphoria.”

The current Altcoin Season Index showed a breakout from the Bitcoin dominance zone. According to Alphpractal’s multi-year analysis, altseasons tend to begin when Bitcoin either shows weakness or sits at a historical support zone.

By mid-June 2025, Bitcoin is stuck following a sharp rise. This weakening, combined with rising altcoin performance, matches both historical triggers.

Importantly, Alphpractal’s data also found a repeating seasonal trend. Since 2022, every June has marked the beginning of an altseason.

The analysis shows that in June 2025, over 23% of altcoins are already outperforming BTC, and the index is climbing. These are typical early signs of a larger altseason move.

The chart breakdown also shows Bitcoin’s relative strength diminishing over time while altcoin momentum grows, creating ideal conditions.

Web3 Funding Suggests Long-Term Support

Additionally, blockchain funding trends reveal deeper structural support for altcoins. In the first quarter of 2025, Web3 startups’ funding reached $3.8 billion, the most since the middle of 2022.

This capital injection aligns closely with previous altseason periods, particularly Q1 2021. Funding data was shared in Alphpractal’s final chart, showing a strong correlation between periods of high Web3 investment and altcoin outperformance.

The metric suggests that rising capital flow into crypto startups often precedes market expansions.

Additionally, altcoin strength is not uniform. Analysts pointed out that a large portion of the inflow is going to newer sectors, including decentralized AI, modular blockchains, and gaming tokens.

These projects often outperform during early altseason phases as investor attention shifts toward innovation and riskier assets.

Short-Term Cycles

Since the 2021 blow-off altcoin season top, the market has only seen fragmented short rallies, isolated to sectors like memecoins or gaming.

The only difference with the present arrangement is its multi-layered convergence. ETH/BTC structure is bullish, altseason index is climbing, and macro liquidity from venture capital is re-entering.

There is no need for a full Bitcoin collapse for altcoins to rally, only relative stagnation. With BTC pinned under resistance and ETF narratives priced in, they become the next high-beta trade.

The rotation has already begun, and history suggests the process is likely to gather momentum rapidly.