- Ethereum’s ETH/BTC ratio up 38% from lows, signaling reduced selling pressure and potential altcoin season start.
- ETH trades at $2,584; market cap tops $300B as Bitcoin dominance nears 60%, down from 65%.
Analytics firm CryptoQuant reports that Ethereum (ETH) may have reached its lowest point relative to Bitcoin (BTC), with the ETH/BTC ratio rising 38% from recent lows. This shift suggests growing demand for Ethereum and reduced selling pressure, potentially signaling the start of a new phase for alternative cryptocurrencies.
At press time, Ethereum trades at $2,584, up 1.9% in 24 hours. Its market capitalization exceeds $300 billion, solidifying its position as the largest altcoin ahead of XRP. Meanwhile, Bitcoin’s dominance—its share of the total crypto market—has dipped near 60%, down from a peak of 65% earlier this year.
Bitcoin Dominance Declines as Altcoins Gain
Bitcoin’s dominance historically rises during market uncertainty as investors flock to its perceived stability. However, its recent slide coincides with Ethereum’s resurgence. ETH’s market share now approaches 10%, while stablecoins like USDT and USDC account for roughly 6%, down from prior levels.
Despite these shifts, ETHNews analysts caution that Bitcoin remains the market driver. Glassnode notes Ethereum and other altcoins still trail their previous dominance highs. For instance, Ethereum’s share remains below its 2021 peak of 20%, indicating room for growth if momentum holds.
While Ethereum’s rebound sparks optimism, recent data introduces caution. U.S.-listed Ethereum ETFs saw $40 million in outflows on Tuesday, according to SoSoValue. Total inflows for these products stand below $2.5 billion since their launch, reflecting tempered institutional interest compared to Bitcoin ETFs.
ETHNews highlight that altcoin seasons typically require sustained capital rotation from Bitcoin into smaller assets. So far, this cycle has favored Bitcoin, with major altcoins lagging. Ethereum’s ability to maintain its current trajectory could determine whether broader altcoin gains follow.
Ethereum’s technical upgrades, including the recent Pectra hard fork, aim to enhance scalability and reduce transaction costs. These improvements could attract developers and users, strengthening its use cases in decentralized finance (DeFi) and non-fungible tokens (NFTs).
