Key Takeaways
Ethereum is holding round $4,500. The ETH/BTC ratio dipped 3.7% off 0.04. However a breakout there might be the spark for altcoin season.
The crypto market is sliding right into a decisive week.
Bitcoin [BTC] is down 0.42% midweek, exhibiting gentle weak point, whereas Ethereum [ETH] has taken a sharper hit, sliding 4.5% from its $4,800 open to put up its first purple weekly candle of August.
On the dominance entrance, BTC.D is rebounding off 57% as ETH.D slips 3.5%. Market construction is clearly in flux.
However the actual query is which leg (BTC’s power or an ETH-led rotation) asserts itself subsequent.
ETH/BTC indicators the subsequent leg of market rotation
ETH/BTC is carrying directional weight for the primary time since Q3 2022.
Again then, the pair ripped almost 40% to 0.07 whereas BTC.D slid 7 factors to 38%. The transfer lit up the Altcoin Season Index at 98, marking a full-blown rotation as capital flooded into alts.
In distinction, the December 2024 setup fizzled. Regardless of the index hitting 88, the ETH/BTC ratio broke down beneath 0.04, sliding to a five-year low of 0.017, exhibiting capital move stayed Bitcoin-heavy all through the rally.
Supply: TradingView (ETH/BTC)
Since late-June although, ETH/BTC has doubled, grinding greater.
In truth, the pair is now testing 0.04 resistance in its first vertical transfer since 2021. On the identical time, the Altcoin Season Index has climbed to 61, hinting this run is alt-driven somewhat than BTC spillover just like the December run.
The important thing query now could be, can a clear break above 0.04 within the ETH/BTC ratio set off a full-blown rotation into altcoins, much like the surge we noticed through the 2022 cycle?
Ethereum exhibits relative power amid market flux
Regardless of the weekly pullback, Ethereum is exhibiting bullish resilience.
Even down 4%, ETH is holding 6% above its $4,300 weekly base, signaling bulls could also be carving a ground. Consecutive ETF inflows are stacking on the upside, reinforcing AMBCrypto’s bullish thesis.
On the flip aspect, Bitcoin has logged three straight weekly pullbacks off its $124k ATH, closing every week decrease, that means BTC hasn’t discovered a backside but, leaving the door open for a deeper correction.
Supply: TradingView (BTC/USDT)
Ethereum stays firmly in bullish territory, due to a key technical divergence.
Whereas ETH’s current weekly pullback seems to be a wholesome reset—flushing out weak palms and cooling down overheated derivatives, Bitcoin’s dip, in distinction, displays market indecision.
Towards this backdrop, Ethereum bulls could also be positioning for a breakout within the ETH/BTC ratio above 0.04.
With the Altcoin Season Index rising in parallel, indicators level to a possible full-scale altseason on the horizon.
