Despite Ethereum’s strong performance, the altcoin season faces obstacles due to a correlation with the gold rally. Analysts like Michael van de Poppe note a pivotal moment, predicting altcoins’ rise once gold peaks. In September, only Ethereum outperformed gold with a 15% return. Bitcoin ended August with a 15% loss.

Expectations of a Fed rate cut on September 17 have investors awaiting a liquidity boost. With Bitcoin dominance dropping, analysts like Crypto Patel anticipate the altcoin rally starting when Bitcoin dominance falls to 45%-40%, potentially leading to significant gains on altcoins.

Historically, major altcoin seasons begin in September, offering high returns on low-cap altcoins. Analysts suggest the market may be entering “Altcoin Season 3.0” as Bitcoin consolidates and market liquidity shifts. The correlation between gold and altcoins continues to influence market trends.

Read more at Yahoo Finance: Gold Rally Is Delaying Altcoin Season 3.0, What Happens Next?