[Analysis] "Ethereum's Bullish Rally Could Be the Beginning of an Altcoin Rotation Cycle"

Recently, there have been predictions that the upward momentum of Ethereum (ETH) may go beyond a short-term event and mark the start of an altcoin rotation cycle.

According to CoinDesk, a media outlet specializing in virtual assets (cryptocurrencies), analyst Miles Deutscher analyzed, "This Ethereum strength was triggered by short position liquidation, but more importantly, it's about the 'on-chain wealth effect.'"

Earlier that day, Ethereum surpassed $4,200, reaching its highest price since December 2021. It was also explained that about $207 million worth of shorts were liquidated over the past 24 hours, accelerating the upward trend.

Deutscher said, "When ETH rises, both major holders and retail investors see an increase in unrealized profits, and, for higher returns, they reallocate capital into smaller and higher-risk tokens."

He predicted the market will go through three phases over the coming months. First, a 'mini alt season' led by ETH begins, followed by capital rotation into Bitcoin, potentially pushing BTC's price to $120,000–$140,000. In the final stage, he suggested that a brief surge aiming for cycle peaks could appear in ETH and small-cap altcoins.