- Ethereum’s ratio against Bitcoin is rising from multi-year lows, signaling the potential start of a strong altcoin season soon.
- Bitcoin dominance is testing a major resistance level at 66%, and a rejection could push more capital into altcoins in coming months.
- Analysts see Ethereum and altcoins gaining momentum as Bitcoin’s market share trends lower, echoing previous cycles from 2017 and 2021.
The cryptocurrency market may be approaching a turning point as Ethereum shows signs of outperforming Bitcoin. According to analyst Moustache, the Ethereum-to-Bitcoin ratio chart is flashing a signal similar to past altcoin seasons. The chart highlights distinct market phases over nearly a decade, with accumulation periods followed by sharp rallies in alternative cryptocurrencies.
Ethereum Ratio Shows Uptrend Potential
Moustache’s analysis identifies three completed cycles since 2015. Each cycle saw Ethereum underperform Bitcoin during accumulation phases, only to surge during altseasons.
Source: Crypto Yoddha
The first occurred between 2015 and 2018, while the second happened in 2021 amid the rise of DeFi and NFTs. Currently, the ratio sits near multi-year lows, suggesting Ethereum may soon enter a period of outperformance.
Additionally, the recent upward projection on the Ethereum-Bitcoin ratio chart hints at the end of the accumulation phase. This could mark the beginning of another altcoin rally.
Bitcoin Dominance Faces Critical Resistance
As for Bitcoin’s market domination, expert Crypto Yoddha notes that it has also been following a cyclical trend since 2016. When cryptocurrencies took off in 2018, Bitcoin’s dominance fell precipitously to 35.41% from its peak of 99.32% in the early years. In 2021, it bounced back to 73.63%, but with the cryptocurrency boom, it fell once more to 38.84%.
Source: Crypto Yoddha
At present, Bitcoin dominance stands at 60.82%, with the chart testing a key descending trendline near 66.03%. Technical analysis suggests two possible scenarios. Bitcoin could break out above this trendline, reinforcing its market leadership, or it could face another rejection and fall further.
Furthermore, if the historical trend continues, Bitcoin’s market share will decline and money would move into altcoins. In line with the bullish prognosis of the Ethereum ratio, such a change would hasten the beginning of a new cryptocurrency cycle.
