Giant Bank Says "Ethereum (ETH) Has Now Recovered from the Drop!" Announces Expectations for the Altcoin Season!

Recently, altcoins have experienced significant volatility, led by Ethereum (ETH). As ETH approaches the critical threshold of $4,000, altcoins have also seen significant gains.

While there was a cooling period in the market after this rapid rise, Swiss cryptocurrency bank Sygnum Bank said that the altcoin season may be near.

According to Cointelegraph, Sygnum Bank said in its recently published Q3 2025 Investment Outlook Report that improved regulatory clarity, increased liquidity, and rising on-chain activity could trigger a long-awaited altcoin season.

Analysts emphasized that previous cryptocurrency bull cycles followed a predictable pattern, with Bitcoin leading the way, followed by altcoins later in the cycle. They noted that this pattern has changed in the current cycle, noting that this cycle is no longer following this pattern due to changes in market structure and a lack of user interest, and is more focused on BTC.

The approval of Bitcoin ETFs during this cycle has caused Bitcoin's dominance to rise to levels not seen in recent years. This, according to analysts, has further overshadowed altcoins.

However, analysts noted that the recent decline in BTC dominance suggests the long-awaited altcoin season may be upon us. They also added that investment in altcoins could increase as cryptocurrency regulations become clearer.

Referring specifically to the recent surge in institutional demand for Ethereum, Sygnum analysts said that ETH has definitively broken its long-term downtrend and completely escaped the prolonged bear market.

Analysts recently noted that while indices are still far from signaling an altcoin season, the decline in Bitcoin's dominance has bolstered hopes for an altcoin season. Sygnum also added that the altcoin season will be slower and much quieter than previous cycles.

The shift from Bitcoin to altcoins was a hallmark of past crypto bull cycles and was widely expected in the current cycle as well. However, unusually strong Bitcoin drivers and changes in market structure, where traditional financial institutions play a much larger role, have delayed the altcoin season and will likely keep it much quieter than in past cycles.