The current cryptocurrency market is experiencing the third wave of altcoin season in this bull run. The altcoin index has risen to 61, showing strong upward momentum. This is another significant increase following October 2023 and November 2024.

Market participants generally expect Ethereum to break the $4000 barrier, while the altcoin index is expected to hit new highs. However, investors should be cautious, as once these key levels are broken, the market may experience significant volatility and liquidation activities.

It is worth noting that Bitcoin, Ethereum, and other altcoins seem to be taking turns rising. Currently, Bitcoin is in a consolidation phase, while altcoins are showing active performance with a strong upward trend.

In this round of increases, the NFT (Non-Fungible Token) sector has performed particularly well, leading the entire encryption market. At the same time, changes in stablecoin regulatory policies have also attracted widespread attention in the market. Some large institutional investors, such as Strategy, have begun to increase their holdings of Bitcoin, further boosting market confidence.

As Ethereum breaks through $3700, investors are closely watching whether it can maintain its upward momentum. However, in the face of such rapid market changes, investors must remain cautious and manage risks effectively.