Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Veteran technical analyst John Bollinger has identified potential bullish “W” bottom patterns in the charts of Ethereum (ETH) and Solana (SOL), suggesting a possible return of buying pressure for these altcoins. However, Bollinger noted that Bitcoin (BTC) does not yet display similar reversal signs, continuing to trade sideways without a clear bottom formation.
Altcoins Show Potential Bullish Patterns
John Bollinger, the creator of the widely used Bollinger Bands technical indicator, shared on X (formerly Twitter) that both Ethereum and Solana charts are exhibiting what he terms “potential ‘W’ bottoms.” This technical pattern typically involves two price drops where the second low is often higher than the first, frequently appearing before a price recovery, especially when accompanied by narrowing Bollinger Bands.
Such a formation generally indicates a weakening of selling pressure and a potential influx of buyers. Bollinger had previously identified a similar setup in Bitcoin in April 2025, which was subsequently followed by a significant rally, suggesting that Ethereum and Solana might now be poised to lead the market.
Bitcoin Lacks Reversal Setup
In contrast to Ethereum and Solana, Bitcoin’s chart currently lacks a confirmed “W” bottom pattern, according to Bollinger. The BTC/USD pair continues its sideways movement, indicating that the leading cryptocurrency may still be in a consolidation phase and not yet ready for a clear trend reversal.
Market observers have also noted a potential shift in focus away from Bitcoin toward other digital assets. This divergence, where Bitcoin remains around key support levels without strong reactions to recent price drops, could be contributing to traders and institutions exploring altcoins.
Ethereum Outperforms Bitcoin Amid Capital Rotation
The ETH/BTC trading pair has seen a notable increase, rising 1% in the last 24 hours and over 7% for the week, signaling Ethereum’s outperformance relative to Bitcoin. A rising ETH/BTC ratio is often interpreted as an early indicator of strengthening altcoin performance.
Institutional movements further support this narrative, with reports indicating that BlackRock reduced its Bitcoin holdings during a recent downturn while increasing its exposure to Ethereum. This adjustment by a major institutional player suggests a potential shift in market preference towards altcoins.
Ethereum climbed 1.52% to $3,891, and Solana advanced 2.15% to $186 in the last 24 hours, reflecting positive reactions to recent market activity. Analysts are closely monitoring these trends for signs of an “alt season,” a period characterized by altcoins outperforming Bitcoin, with a sustained rise in the ETH/BTC ratio being a key signal.
