- Ethereum’s weakness against Bitcoin signals a delayed altcoin season, as ETH/BTC continues trending downward.
- Bitcoin dominance historically rises before altcoins rally, but ETH/BTC must stabilize for a true altcoin season to emerge.
- Traders anticipating an altcoin season for years have been wrong—Ethereum needs stronger catalysts to reverse its bearish trend.
The possibility of an altcoin season is being raised by Ethereum’s ongoing drop in value relative to Bitcoin. Recently, cryptocurrency expert Benjamin Cowen stressed that Ethereum-to-Bitcoin (ETH/BTC) needs to bottom out and trend higher in order for a real altcoin season to begin. Altcoin rallies are likely to be postponed as long as ETH/BTC is in a downward trend.
ETH/BTC Faces Strong Selling Pressure
Since early 2024, ETH/BTC has broken key support levels, indicating increased bearish momentum. Ethereum is currently trading at 0.02794 BTC, a 13.28% decline, according to the most recent statistics. Before a minor rebound, the price recently fell to 0.02337 BTC.
In contrast to Bitcoin, Ethereum has gone through periods of growth and decrease in the past. Before a decline, ETH reached an all-time high in 2017 in comparison to BTC. A prolonged downtrend followed until late 2019. In 2020, ETH/BTC began recovering and peaked in 2021 before entering another steady decline.
Currently, Ethereum forms lower highs and lower lows, reinforcing the bearish trend. Since 2022, ETH/BTC has struggled to gain upward momentum, aligning with Bitcoin’s dominance increase. The persistent weakness suggests Ethereum needs stronger market catalysts for a reversal.
Bitcoin Dominance Impacts Altcoin Market
Cowen argues that Bitcoin leads bull markets, not altcoins. Historically, Bitcoin dominance increases before altcoins start gaining traction. Many traders mistakenly believe rising Bitcoin dominance is bad for the market. However, altcoin rallies typically emerge when Bitcoin dominance is high and starts declining.
Bitcoin dominance has risen throughout 2024, delaying altcoin performance. Even if altcoins have historically benefited from post-halving years, ETH/BTC is still declining. An altcoin season might begin if Ethereum’s success reverses against Bitcoin. The tendency is still bearish for the time being, though.
Moreover, Cowen highlights that traders have called for an altcoin season for three years but have been repeatedly wrong. Until ETH/BTC stabilizes and trends higher, altcoins are unlikely to see sustained growth.
