Ethereum Breakout May Spark Altcoin Season Amid Soaring Macro Conditions

The crypto market may be on the cusp of an altcoin season in 2026, according to analysts. Several factors are aligning, including Ethereum's potential breakout against Bitcoin and improving macro conditions.

Ethereum has been lagging behind Bitcoin since December 2021, but its recent move against BTC is a crucial turning point. Analyst Michaël van de Poppe noted that ETH/BTC is testing long-term resistance around 0.028, a level it last breached in early 2021.

The analyst also pointed out that core inflation has posted its biggest decline in over four years, and expectations for another Federal Reserve rate hike have dropped sharply. This could lead to easier monetary policy, creating a more supportive environment for risk assets like cryptocurrencies.

In addition, Japan's M2 money supply has historically led Bitcoin moves by roughly 84 days, and the US Dollar Index (DXY) is testing resistance, which could support additional liquidity if the dollar weakens. This scenario could provide a stronger backdrop for digital assets in the second half of 2026.