Ethereum Surges 9.79%, Outpacing Bitcoin as Crypto Markets Rally on Hormuz Relief

EcoPulse24 | New York

Ethereum, the world's second-largest cryptocurrency by market capitalisation, surged 9.79% on Monday - its strongest single-session gain in over a month - dramatically outpacing Bitcoin's comparatively modest 1.96% rise as digital-asset markets broadly rallied on signs of easing tension in the Strait of Hormuz. The move lifted Ether back above $2,300 per token as investors rotated aggressively into risk assets across global markets.

Altcoins Dominate the Session

Monday's crypto session was defined not just by Ethereum's sharp advance, but by a clear shift in market leadership away from Bitcoin and toward higher-beta altcoins. Ripple (XRP) surged 6.54%, ranking as the second-best performer among major digital assets, while Dogecoin gained 6.50%. Bitcoin, which had been the dominant performer in prior sessions as investors sought relative safety in the most liquid crypto asset, managed only a 1.96% gain - roughly one-fifth of Ethereum's move. This divergence, in which altcoins outperform Bitcoin by a wide margin, is a well-established pattern in crypto markets that typically signals a shift from defensive positioning to genuine risk-on appetite. Traders refer to this dynamic as an "altcoin season signal," and it historically precedes broader and more sustained rallies across the digital-asset complex.

Hormuz Relief Sparks Broader Risk Rally

Crypto markets moved in tight synchronisation with global risk sentiment on Monday. The catalyst was a series of reports confirming that several LPG tankers had successfully navigated the Strait of Hormuz over the weekend, partially alleviating fears of a total and permanent closure of the critical waterway. The International Energy Agency confirmed that its record coordinated release of more than 400 million barrels from emergency oil stockpiles was flowing to markets in Asia and Oceania. Separately, the US administration issued temporary licences allowing certain countries to purchase stranded Russian petroleum products, further easing near-term supply concerns. Oil prices responded sharply: West Texas Intermediate crude tumbled 4.75% and Brent fell 2.26%, reducing inflationary expectations and freeing risk appetite across asset classes. Equities rallied - the FTSE 100 rose 0.6% and European stocks gained broadly - and crypto markets followed suit. The relief in energy prices was directly correlated with the Ethereum move, as lower oil-inflation expectations reduce pressure on central banks to maintain tighter monetary policy, which is historically supportive for growth and risk assets including cryptocurrencies.

On-Chain Activity Supports the Move

The strength of Ethereum's move was supported by on-chain fundamentals. Transaction volumes on the Ethereum network rose sharply in the 48 hours preceding Monday's price action, with increased activity on decentralised finance platforms suggesting genuine demand growth rather than purely speculative price action. The network's base fee - a proxy for usage and congestion - ticked higher, a sign that the blockchain is seeing real transactional demand. Additionally, Ethereum staking inflows increased, indicating that long-term holders were adding to positions rather than selling into strength.

EcoPulse24 Analysis

EcoPulse24 Analysis: Ethereum's 9.79% single-session surge signals a meaningful shift in crypto market psychology from risk-off to risk-on, fuelled by the Hormuz relief trade that swept global markets on Monday. The pattern of altcoins - Ripple +6.54%, Dogecoin +6.50% - sharply outperforming Bitcoin typically precedes broader and more durable crypto rallies. However, this recovery remains hostage to geopolitical developments: any re-escalation in the Strait of Hormuz or renewed disruption to tanker traffic would likely reverse these gains rapidly. Investors should watch whether Ethereum can hold above the $2,300 resistance level and whether Monday's altcoin leadership sustains into Tuesday - two conditions that would confirm a more durable recovery phase for digital assets rather than a one-day relief bounce.