A closely followed crypto analyst says a catalyst could send the altcoin market soaring for months.

The pseudonymous analyst known as Rekt Capital tell its 100,000 YouTube subscribers that if Ethereum (ETH) breaks through a key “the next few months will be life changing” resistance level.

“A breakup would allow a massive influx of money into smaller altcoins. And Ethereum reaching new all-time highs would be a major catalyst on a technical level to cause all of these other altcoins to rebound quite substantially.

According to the trader, ETH needs to cross the $4,000 mark to trigger massive altcoin rallies.

“It was the weekly closes and successful retests (at the $4,000 level) that allowed new all-time highs to be reached. So $4,500 would happen once we actually achieve a weekly close here and retest this level ($4,000 level) as support. This would allow a return to old all-time highs, and likely after breaking $4,500, a move back up to new all-time highs and price discovery.

Ethereum is trading at $3,595 at the time of writing.

He also shares an OTHERS chart, which plots the total crypto market cap excluding the top ten coins to gauge the strength of the altcoin market, and suggests that alts could rise like they did in 2021.

“Now we see a weekly close and a retest here, and a successful retest here would allow an increase from $315 billion to $425 billion…

When we closed and retested this region every week (in 2021), we saw an expansion in the altcoin market cap to new all-time highs, essentially…

If we manage to stay here for a few weeks, that would increase to $425 billion.”

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