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Ethereum has surged 50% against Bitcoin since April. However, the cryptocurrency could rally 30% more, according to chart patterns.
Bitcoin dominance appears to have peaked at 63.82%, according to multiple analysts.
Institutional ETH holdings and rising ETP inflows show an incoming long-term shift toward Ethereum from investors.
Bitcoin has long been the king of crypto. This asset has dominated everything from market share to investor attention from the onset. However, this dominance may finally be weakening.
According to multiple analysts and recent trading data, there’s now a “99% chance” that Bitcoin’s dominance has hit a ceiling, especially if Ethereum’s bullish trend continues.
Bitcoin dominance, or the percentage of total crypto market cap held by Bitcoin, currently sits around 63.82%, according to TradingView. While this reading is still very high, it has dropped by nearly 2% over the last month.
According to analyst Matthew Hyland, this decline could be a signal that Bitcoin’s grip on the market is weakening. “If ETH breaks bullish and remains bullish against BTC, there is a 99% chance BTC Dominance has topped,” Hyland wrote on X.
Another analyst, Ash Crypto, echoed this view and pointed out that the recent change in dominance comes as money flows out of Bitcoin and into altcoins.
Ethereum is currently riding a wave of bullish sentiment. Over the past week, the cryptocurrency has surged by almost 20%, and it's up 50% against Bitcoin since April. On July 10, the ETH/BTC pair broke out of a bull flag pattern, which, historically, tends to come before a massive price upside.
At the time of writing, ETH/BTC sits at 0.0267 BTC, or its highest level in four months.
It has also climbed above its 200-day exponential moving average (EMA) for the first time in over a year.
This breakout and support retest are bullish signs that indicate that Ethereum could rally another 30% against Bitcoin and even possibly hit 0.035 BTC by August or September.
According to technical analyst Michaël van de Poppe, the breakout at 0.02425 BTC is a very important moment, and Ethereum’s strength from here will likely pull the altcoin market up with it.
While technical indicators paint a bullish picture, Ethereum’s surge isn’t purely speculative. Institutional interest in ETH is growing rapidly, according to data from Farside Investors and CoinShares.
CoinShares data in particular, shows that Ethereum has posted 12 straight weeks of inflows into investment products. These inflows have totalled nearly $990 million so far, and is the fourth-highest on record.
Strong Ethereum inflows | Source: Coinshares
In percentage terms, Ethereum’s inflows now account for 19.5% of its total assets under management, compared to 9.8% for Bitcoin.
On the other hand, more companies are adding ETH to their treasuries. Entities like SharpLink, BitMine and Bit Digital have helped push corporate ETH holdings past $5 billion according to StrategicETHReserve.XYZ.
This trend shows an ongoing change in how institutions view Ethereum
Despite Ethereum’s rise, Bitcoin isn’t necessarily in trouble. Ethereum’s year-to-date performance is still in the red, while being down 5.85% in U.S. dollar terms. That underperformance compared to Bitcoin and top altcoins like XRP and BNB indicates that there’s still room for Ethereum to catch up.
In essence, if Ethereum continues to gain institutional interest and momentum in trading, it could not only catch up to Bitcoin in terms of percentage returns, but possibly outpace it by year’s end.
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Ethereum’s recent breakout against Bitcoin could be a sign of an incoming crash in the latter’s dominance. Could Ethereum kickstart the next altcoin season soon?