Lower High in BTC Dominance Points to ETH-Led Market Phase

BTC dominance weakens while ETH positioning lightens, hinting at early rotation signals.

Bitcoin dominance is beginning to weaken, raising new questions about money flows in the cryptocurrency market. After months of steady gains, BTC.D has failed to move back to its previous highs and is now drifting lower on the weekly chart. At the same time, Ethereum and other altcoins are finding support after sharp losses earlier this quarter.

Altcoins Consolidate at $175B as BTC Dominance Prints Weekly Lower High

On the weekly chart, BTC dominance printed a clear lower high. Price failed to reclaim the 65–66% region before rolling over toward 58%. A flattening 50-week moving average signals slowing upside momentum. Cooling-momentum readings support a structural transition. Historically, similar setups have preceded capital rotation into higher-beta assets.

Bitcoin dominance alone does not confirm a new altcoin cycle, but the broader setup shows early signs of a shift. ETH/BTC is trading near 0.029 after months of weakness. It remains below the 200-day moving average at approximately 0.0349, indicating that the larger trend has not changed. Still, downside momentum is slowing.

Recent price action shows:

• Selling pressure is easing after an extended decline.
• Momentum is flattening instead of making new lows.
• Volatility is tightening, forming a possible higher low.
• Short-term flows are stabilizing rather than falling further.

Such price action often signals a base forming. For Ethereum to show leadership, ETH/BTC needs to move back above 0.031–0.032 and later break its 200-day average. Until that happens, the setup suggests stabilization rather than a full reversal. Still, slowing downside pressure can come before a period of relative strength.

Following a sharp capitulation in early February, total market cap excluding top ten assets staged a V-shaped recovery. Price now consolidates around $175 billion. Violent flush likely cleared excess leverage and weak positioning.

Image Source: TradingView

Resistance remains near $180–185 billion. A decisive break above that range would signal broader participation. Volume expansion during such a move would strengthen conviction. Failure to reclaim resistance would instead confirm ongoing consolidation.

Crowded BTC Trade Faces Test as Ethereum Derivatives Reset

Options-to-futures open interest ratios show Bitcoin maintaining stronger structured exposure. Ethereum’s ratio has declined toward multi-month lows. Institutional hedging still favors BTC. Meanwhile, ETH positioning appears lighter and less crowded.

Image Source: CoinGlass

On a risk-reward basis, lighter positioning in Ethereum creates more room for upside. If ETH/BTC starts to trend higher, new positions could quickly push momentum stronger. On the other hand, heavy Bitcoin exposure may limit further gains in dominance. Crowded trades often slow down once buying pressure weakens.

Several metrics now point in the same direction. Bitcoin dominance has formed a lower high, while ETH/BTC has moved from a sharp drop into sideways consolidation. Altcoin market cap is stabilizing after heavy selling, and Ethereum derivatives positioning remains relatively light.

To confirm the trend, ETH/BTC must reclaim key resistance and its 200-day average. Meanwhile, the altcoin market cap must break above recent highs with strong participation. Until those levels are cleared, the market sits in transition rather than a confirmed altseason.

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