Hello, Welcome back to the Wealth Vault. In today’s edition, we’ll dive into 3 altcoin narratives that I believe are set to lead the next leg up, driven in part by key developments coming out of the U.S., especially around the CLARITY and GENIUS Acts.
By the end of this edition, you’ll have a few fresh trade ideas and a clearer picture of the altcoin trends that could lead the next big move in the crypto market. Here’s everything I’m going to discuss:
💎Market Update
💎Why is ETH Gaining Against BTC?
💎Top 3 Narratives to Watch Right Now
Let’s get into it ⤵️
💎Market Update
Bitcoin
On the 4H chart, Bitcoin is currently consolidating near the lower end of its range, gearing up for its next leg higher. Over the past month, BTC has remained range-bound, largely reacting to broader macro developments.
The daily timeframe is showing a series of higher lows, and a bullish pennant is forming on the daily chart, a classic continuation pattern. As long as Bitcoin continues to hold above the key support confluence, which combines a key S/R level with a former supply zone that has now flipped into demand, the bullish structure remains valid.
Interestingly, Bitcoin’s volume is now at its lowest point since 2014. Historically, this kind of low-volume environment, paired with rising prices, has preceded major rallies. We saw it in 2013, 2017, and possibly now. Of course, this time, part of the volume drop may be because more activity is happening through ETFs and institutional vehicles rather than exchanges. So, it’s not a one-to-one comparison with past cycles, but the compression is still a bullish signal.
Ethereum
Ethereum is showing strength too. ETH/USD is forming a broadening wedge on the daily chart. Price has recently bounced cleanly off the 50-day EMA, acting once again as strong dynamic support, and is currently holding the bottom boundary of the wedge.
This is simply consolidation within a healthy trend; a pause before the next leg higher. The RSI is beginning to turn upward, and higher lows are continuing to build. If ETH can maintain this structure and break through overhead resistance, the next key target is $3,400.
Ethereum is now outperforming Bitcoin in futures trading volume, as speculative capital rotates into ETH.
The last week has also seen a sharp rise in the ETH validator queue, alongside a multi-week streak of inflows into ETH liquid staking derivatives.
Ethereum recently recorded 17 consecutive days of inflows into spot ETH ETFs as institutional and retail confidence grows.
💎Why is ETH Gaining Against BTC?
Ethereum’s recent strength is being supported by growing regulatory clarity in the US, most notably, the recent passing of the Clarity Act, which officially confirms that Ethereum is not a security. Instead, it’s now recognized as infrastructure, much like the internet. That distinction improves the chances of staked ETH ETFs gaining approval.
This shift is creating an incredibly bullish environment for Ethereum-related products, particularly staking and DeFi protocols. It’s a complete turnaround, where after years of regulatory uncertainty that made it nearly impossible to build openly in the U.S., the door is finally open. These projects can now develop, attract institutional investment, and even position themselves for ETF listings.
It’s all part of a broader regulatory tailwind that’s pushing the Ethereum ecosystem forward. And we’re already seeing it play out in real time: ME recently became the first liquid staking token to be added to a public company’s treasury. Republic Technologies, managing Ethereum assets for Beyond Medical Technologies, allocated a significant portion of ETH into ME, marking a new milestone in institutional adoption.
💎Top 3 Narratives to Watch Right Now
Keep reading with a 7-day free trial
Subscribe to Wealth Vault: Defi Insider to keep reading this post and get 7 days of free access to the full post archives.