Bitcoin has performed exceptionally well over the last few months. However, Ethereum could be ready to challenge this momentum.
According to insights from ByBit, Ethereum is dominating Bitcoin in terms of the ETH/BTC spot price ratio.
Coinshares' data also shows clear capital rotation from Ethereum into Bitcoin with institutional investors.
Bitcoin's dominance reinforces this outlook, with an apparent decline since late November.
Through it all, Bitcoin has a near-term target of $112,000 - $115,000, and Ethereum has a long-term target of $10,000 - $15,000 by May 2025.
Bitcoin has been hot lately, but Ethereum is no small fry.
The latter has been making waves, outperforming Bitcoin in both the spot and derivatives markets as interest in altcoins grows.
ByBit first highlighted this trend in its November market report, which it co-created with Block Scholes.
According to the dip, the traction that Ethereum has garnered so far after the 5 November US Presidential election shows a significant shift in market focus…
And here’s everything to know.
To begin with, ByBit notes that the ETH/BTC spot price ratio saw a major increase in November alone.
This ratio rose from around 0.0325 on 21 November to over 0.04 by 6 December, which ByBit attributed to a growing demand for Ethereum Options.
An increase in the BTC/ETH ratio
In essence, the market is pivoting sharply and is favoring Ethereum.
The change has also been supported by an ongoing increase in Ethereum's momentum following SEC Chair Gary Gensler’s planned resignation.
ByBit noted that this trend shows a broader shift towards the altcoin market, especially with Wall Street beginning to embrace Ethereum’s potential.
Another major issue to consider is Bitcoin's dominance compared to the rest of the market.
According to data from CoinMarketCap, this metric dropped from around 60% on 21 November to less than 52% on 6 December before rising again to around 53.9%, where it now sits.
Bitcoin's dominance is waning.
Interestingly, this decline coincides with a massive capital reallocation highlighted by CoinShares in a recent report.
According to the data aggregator's digital asset fund flow report, Bitcoin funds experienced a massive $457 million in outflows during the week around 26 November.
On the other hand, the Ethereum funds saw inflows of nearly $650 million—a clear shift in investor interest.
Crypto flows by asset.
Despite this apparent shift in Bitcoin investor sentiment, analysts are generally optimistic.
For example, renowned crypto analyst Ali Martinez mentioned in a recent tweet that local Bitcoin tops typically come in around the Short-Term Holder Cost Basis +1 standard deviation.
The analyst went further to say that this metric indicates an immediate price target of $112,926.
To further emphasize the point, the Bitcoin whales also accumulated around 20,000 BTC within a 24-hour span on 7 December, worth $2 billion.
Another analyst, Charles Edwards of Capriole Fund, shares this optimism and points out an interesting Bitcoin pattern.
This pattern, which he calls a "spinning top," reportedly mirrors the behavior seen when Bitcoin crossed previous milestones like $1,000 and $10,000.
In essence, the Fibonacci extensions show that BTC’s next target is the $115,000 zone, with the potential for a breakout to $124,500...
Almost the same outline Ali Martinez laid out.
Bitcoin's close competitor, Ethereum, has also shown remarkable resilience by recovering quickly from the $3,615 zone on 5 December.
The altcoin now trades above $4,000, printing higher highs and lows.
Analysts generally believe this marks the start of a larger upward trajectory for the cryptocurrency.
For example, analyst VentureFounder believes the cryptocurrency could hit $10,000 - $13,000 by May 2025.
The analyst mentioned the cryptocurrency's three-year ascending triangle pattern as a key indicator to bolster his points.
Interestingly, if VentureFounder turns out to be correct, this bullish prediction means that Ethereum could be on its way to crossing the $1 trillion market cap line for the first time.
Similarly, Honey, another trader, pointed out a “golden cross” formation on Ethereum’s daily chart—the start of another “giga pump.”
However, the analyst also mentions that Ethereum must maintain support at the $3,800 mark for this rally to hold.
While Bitcoin aims to claim and hold the six-figure target, Ethereum's growing dominance shows an incoming shift in the Crypto ecosystem.
This bullish outlook for Ethereum is mainly reinforced by its healthy institutional interest and strong technical outlook.
Put simply, the coming months will show whether Ethereum's trajectory continues to outpace Bitcoin's. 2025 is shaping up to be a pivotal year for the cryptocurrency in terms of bullish potential.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate data. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.