Ethereum’s Surge in Open Interest Hints at Altcoin Season

Ethereum’s price surge and soaring open interest signal growing investor confidence and could mark the beginning of a strong altcoin season.

ETF inflows into Ethereum now exceed new issuance, suggesting high demand as traders rotate from Bitcoin into altcoins for bigger gains.

Ethereum is outperforming Bitcoin while open interest grows fast, showing altcoin season may be unfolding sooner than many expected.

Ethereum is showing early signs of leading the next altcoin season as its price and open interest surge. As of mid-2025, Ethereum’s open interest has skyrocketed to over $21 billion. Meanwhile, Ethereum has been outperforming Bitcoin, a classic alt season trigger according to long-time crypto analyst Kyle Chassé. The setup hints that a broader altcoin rally could be just around the corner.

Source: Kyle Chasse

Additionally, institutional and retail players are positioning themselves in Ethereum, according to open interest statistics. Furthermore, following several erratic fluctuations since late 2022, Ethereum's price has stabilized and is currently trading at about $2,951. The price has almost doubled since its lowest point in 2022.

Bitcoin’s Bull Run Sets the Foundation

Furthermore, the value of Bitcoin surged, rising from $10,000 in late 2022 to over $100,000 in 2025. Prices tripled in six months when the increase accelerated in the middle of 2024. Consequently, Bitcoin's price and open interest rose. From roughly $10 billion in 2022, it had grown to almost $40 billion by 2025.

Source: Kyle Chasse

This sharp increase implies greater involvement in derivatives markets and underscores the growing trust of institutional investors. But now, Ethereum's open interest is growing faster than Bitcoin.

Altcoin Season May Be Closer Than Expected

Ethereum’s outperforming behavior suggests the rotation from Bitcoin to alts may have already started. Historically, alt seasons begin subtly with Ethereum gaining dominance. This time, ETF inflows and surging OI appear to be the fuel behind the shift.

Moreover, both ETH and BTC charts show a strong correlation between rising prices and growing open interest. This pattern points to a healthy bull cycle driven by leveraged optimism. However, it also introduces potential volatility as more traders pile into derivatives.

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