Cryptocurrency analysts highlight a rare bullish indicator in Ethereum’s performance, coupled with shifts in market dominance, signaling a potential altcoin rally and the onset of a new bullish cycle driven by capital rotation. Ethereum’s MACD crossover against Bitcoin, occurring at a cycle low as in earlier bull runs, historically precedes substantial altcoin rallies—such as gains of 5x to 20x witnessed during 2017 and 2021 cycles.
Bitcoin dominance currently stands at 54.37%, undergoing its fifth correction since 2023, which suggests increasing capital movement from Bitcoin into lower-cap altcoins. Simultaneously, USDT dominance has broken out of a 7-month technical wedge pattern, indicating reduced market fear and a shift of funds out of stablecoins and Bitcoin toward higher-risk altcoins.
Ethereum’s trading price of 0.03071 BTC potentially marks a cyclical bottom, with historical patterns foreshadowing a strong upward recovery. These rotation signals mirror behaviors observed in prior crypto cycles, collectively pointing toward an impending altcoin breakout phase as confidence grows in altcoin assets.