While Bitcoin Dominance Falls, Ethereum Rises: Is a New Rally Coming?

Last week we evaluated Bitcoin’s market dominance and its impact on the altcoin rally. While Bitcoin dominance fell over 3%, the increase in total market cap strengthened expectations for a sub-rally. Ethereum, in particular, remained strong against BTC and closed the week with over 10% appreciation on the last trading day, with the support of spot Ethereum ETFs in America.

At the beginning of the week, after the CEO of Microstrategy, Michael Saylor (there is also Jim Cramer, for whom a separate title should be opened), announced the purchase of another 5.4 billion dollars of Bitcoin, which the markets generally describe as a reverse indicator, and the subsequent opening of the US markets, Bitcoin fell on Tuesday. It dropped to 90 thousand levels.

Bitcoin, which experienced a rapid recovery on Wednesday, regained its positive outlook and is trading around $97,000, close to its opening levels, as it closes the week. There may be excitement of knocking on the door again this week for Bitcoin, which could not break the door of 100 thousand dollars the previous week.

Ethereum is; While it has long been criticized for underperforming compared to Bitcoin and Solana, it attracted attention with a double-digit increase in value this week. It left behind a week in which it gained value against both Bitcoin and Solana.

The general outlook for the Ethereum / Bitcoin parity is at one of the technically critical levels. ETH/BTC parity, which has been below the MA100, or 100-day moving average, for a long time; After Trump won the last presidential election, it tested this level upwards and was rejected. Now it will try to break this level again. For this reason, this week’s entries may herald a significant comeback for the market.

At the beginning of the week; I think ETF investors are among those who think that now is the time for Ethereum, which went through the period when Bitcoin corrected more astutely, but they are still below their potential. Because Ethereum funds still see very little volume and money inflow compared to Bitcoin funds. Especially the positive inflow of over $300 million into spot Ethereum ETFs on the US side on the last trading day of the week is important because it set a new record and also supported Ethereum to retest the critical level in its daily moving average. The previous record was; It was an inflow of nearly 300 million dollars that came after Trump’s victory in the US presidential elections, that is, the period in which he tested the critical threshold on a daily basis.

Here, a positive change in the trend will affect the Ethereum value extremely positively. In addition, the increase in demand for Ethereum ETFs will increase the excitement for XRP and SOL, which are expected to be released in the future, and will positively trigger the launch of other cryptocurrencies as ETFs. We will see what will happen when the markets open this week.

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