Ethereum (ETH) continues to rise, making many bullish on ETH and the entire crypto market once again. This sharp increase has led to a wave of speculation that altcoin season has begun. In only three days, Ethereum’s price jumped more than 44%. It had been about $1,807 as of May 8 and jumped to over $2,600 by May 10. This impressive rally has revitalized investor sentiment and led analysts to consider potential future price targets for the cryptocurrency, some even suggesting a rise to $10,000.

That means the recent surge has brought back the excitement for altcoins. So powerful that many analysts have started to identify harbingers of a move beyond Bitcoin dominance, an eventuality that would immensely favor Ethereum and other altcoins.

Ethereum Breaks Realized Price

With Ethereum’s recent price surge coming from the upcoming Ethereum merge and general bullish trends, the realized price for acquiring addresses is now over $1,900. This is truly monumental progress. Most importantly, it indicates that a large cohort of investors who previously held ETH under water are now again back in profit territory.

The break above the realized price line is a recurring strong psychological barrier. This ensures more immediate support for asset performance, which strengthens investor confidence and attracts new capital into the market.

Futures Market Sees Surge in Open Interest

The Ethereum futures market has seen even more explosive growth, underscoring the booming interest and activity in the pioneering cryptocurrency. Open interest in Ethereum futures has skyrocketed by 42%. For instance, it made a huge leap from $21.3 billion to $30.4 billion just between May 8 and May 11.

This notable increase in open interest points to a big wave of new capital coming into the Ethereum market. More importantly, it demonstrates that investors are starting to feel confident about its future prospects.

Altcoin Season on the Horizon?

Ethereum's strong performance is contributing to a possible upcoming 'altcoin season' with significant daily profits. Technical analyst Moustache noted that today’s market structure is similar to 2016 and 2020. Both of those time frames resulted in massive booms in altcoins like Ethereum.

Market analyst Mister Crypto expects big things in the days to come. He predicts that the next three to six months will be “life-changing” for altcoin investors—in particular, for those holding Ethereum. The Altcoin Season Index has literally exploded out of a bear trend. This is a promising development as it increases the likelihood of breaking out from under Bitcoin’s dominance making way for Ethereum and other altcoins to thrive.

Market Optimism Fuels Rally

Hank Huang, CEO of Kronos Research, attributes the recent crypto rally, including Ethereum's surge, to a wave of global optimism. Increased investor optimism after US-China trade talks went better than expected are likely playing a role in the rally as well.

According to veteran trader Peter Brandt Ethereum’s prospects have never been better. He thinks that an ETH breakout above the current congestion pattern would be enough to send ETH prices up anywhere between $3,800 and $4,800.

"People want to bid but lack belief in any strong narrative" - Trader 2Lambroz