Ethereum's native token, Ether (ETH), has recently reclaimed a crucial technical level that historically signals significant price rallies and the potential onset of 'altseason.'

This key level is the mid-line of the Gaussian Channel, approximately $2,600, which has previously led to ETH surges of over 100%.

In past cycles, a breakout above this mid-line resulted in ETH prices soaring from $400 to over $4,800 in 2021 and from below $1,500 to nearly $4,000 in late 2023.

Currently, if ETH breaks above the channel's upper band near $3,200, it could potentially reach its previous cycle high of $4,100 by July 2025.

However, approximately $123 billion of ETH's market cap is held by investors who acquired ETH between $2,300 and $2,500, creating significant risk if prices dip below this range.

If ETH falls below this cost basis, panic selling may ensue, putting additional pressure on the market despite ETH's technical strength.

The potential for a 2025 altseason is further supported by a historical pattern of Bitcoin dominance decreasing post-halving, similar to trends observed in 2017 and 2021.

With the April 2024 Bitcoin halving, analysts predict a similar drop in Bitcoin dominance within the next 100 days, which could trigger altcoin rallies.

Historically, the altcoin market cap has increased by over 1,400% after ETH's mid-line closure in July 2020, and by over 200% following November 2023's breakout.

Market analysts suggest that an ETH price rally may lead to broader altcoin market gains, mirroring past patterns where altcoin market caps surged significantly after ETH's breakout.