- Capital rotation from Bitcoin toward major altcoins like Ethereum and XRP is occurring, matching historical cycle patterns.
- Ethereum’s spot trading volume surpassed Bitcoin’s last week ($25.7B vs $24.4B), its first weekly lead since June 2024.
Only 41% of top 50 altcoins currently outperform Bitcoin over 90 days. Blockchain Center data shows this dropped from 59% in late July. The altseason threshold requires 75% dominance, which remains unmet. This indicates a cooling period following earlier speculative activity.
Healthy Correction Supports Future Growth
ETHNews analysts characterize this pullback as organic and healthy. The market experiences natural adjustment after rapid gains. No panic selling or large-scale liquidations appear. Prices consolidate steadily during this phase. This behavior suggests constructive consolidation rather than bearish reversal.
Capital Rotation Toward Major Altcoins
Money now moves from Bitcoin toward large-cap alternatives. ETH (ETH) and XRP show weekly gains while Bitcoin stabilizes. U.S. spot ETF flows mirror this shift, with ETH funds gaining as Bitcoin ETF inflows slow. ETH spot trading volume reached $25.7 billion last week, exceeding Bitcoin’s $24.4 billion – its first weekly lead since June 2024.
Ethereum Shows Relative Strength
ETH rose 72% against Bitcoin since April. The ETH/BTC ratio climbed from 0.018 to 0.031, reaching January highs. Reduced ETH exchange deposits indicate lower selling pressure versus Bitcoin. Market structure aligns with historical cycle Phase 3 patterns. Bullish 2025 forecasts for Ethereum, XRP, and other altcoins remain unchanged despite the pause.
ETH/BTC pair is trading at 0.03098, showing a +1.41% daily increase. This uptick marks a continuation of the pair’s recent bullish structure, with the weekly gain now standing at +8.66% and a monthly rise of +34.85%. This trend reflects a shift in relative strength in favor of Ethereum over Bitcoin in the short-to-medium term.
The ETH/BTC pair has broken above the 0.0305 resistance and is currently retesting the 0.031 zone. This move places it above the 50-day moving average, signaling a structural shift after months of ETH underperformance. The 200-day MA, now trailing below at 0.027, continues to act as a support anchor.
Fundamental Context Supporting ETH Strength
Proto-Danksharding Impact (EIP-4844):
Ethereum’s recent upgrade significantly reduced Layer-2 blob data costs by over 60%, increasing usability across rollups. As more applications migrate to L2s with ETH as gas, demand fundamentals continue to shift.
ETH Spot ETF Flows Surpass $2.5B Weekly:
Ethereum ETFs, led by BlackRock and Fidelity, are driving institutional ETH accumulation. ETH’s exposure to traditional markets has expanded, tightening its correlation to equities while decoupling slightly from Bitcoin’s macro narrative.
Staking Ratio Increase to 30% of Circulating Supply:
Over 35M ETH is now staked, including institutional custody solutions by Anchorage Digital and BitGo. This reduces available supply and enhances ETH’s monetary premium as a yield-bearing asset.
Rollup-Centric Roadmap Adoption:
With zkSync v3 and Scroll achieving EVM equivalence, developers are migrating to ETH-centric rollups. These advances give Ethereum an edge in smart contract scalability that Bitcoin lacks by design.
ETHNews analysts now forecast further ETH/BTC upside toward 0.0328 and 0.035, contingent on continued ETF inflows and no major macro disruption. The ETH/BTC ratio had declined steadily since mid-2022 but appears to have formed a structural bottom around the 0.025–0.026 range. Current sentiment is cautiously bullish, with several chartists citing historical trend reversals that preceded altcoin-led runs.
