Altcoin Season Index Retreats from Highs, Ethereum Correction Adds Pressure

The momentum that drove altcoins through September is starting to cool. Fresh CryptoQuant data shows the Altcoin Season Index sliding from 69 to 64 in the past week, a sign that the rotation into riskier tokens is losing strength. Traders are shifting gears, looking for safer ground after weeks of heavy speculation.

Ethereum, which carried much of the altcoin rally earlier this month, has given back more than 6% in recent sessions, dropping under $4,200.

CryptoQuant that offloaded $72.88 million worth of ETH just before the dip. At the same time, more than 420,000 ETH left exchanges last week, a move that reduces near-term sell pressure but also shows large holders stepping to the sidelines.

This dual behavior i.e., selling size into rallies and moving the rest into cold storage, shows you how cautious big players have become as volatility ramps back up.

The Altcoin Season Index still sits firmly in “altseason” territory at 64 out of 100, but the downtrend from recent highs is clear. In mid-September, the index tapped 75. One month ago, it was 72.

For context, the index reached 87 in December 2024, then cratered to 12 in April 2025, showing just how volatile altcoin cycles can be. The current decline suggests traders are de-risking, but the number remains high compared to earlier this year, keeping altcoins in the broader conversation.

Altcoin market capitalization has climbed from $1.2 trillion to $1.7 trillion in the last 90 days, peaking mid-September before pulling back. That rise mirrors the index’s trajectory, confirming broad participation across majors like ETH, SOL, and ADA, but also newer narratives.

CryptoQuant’s latest read shows that while capital is still cycling into the sector, investor behavior is shifting. Traders are pocketing gains, hedging with safer assets, and preparing for more turbulence as the fourth quarter begins.