eth/btc hits its lowest level this year as bitcoin soars to a new all-time high, fueling debates over market dominance.
bitcoin (btc) hit an all-time high of $97,862.64 (1 a.m. EST). At the same time, ethereum (eth) continues to lag and its performance against bitcoin has fallen to the lowest levels this year. btc consolidating near $97,379.69 at press time has only opened up questions about whether eth can regain speed or mark a broader pullback in altcoins due to btc's rally.
bitcoin Dominance Increases:
According<a target="_blank" href="https://coinmarketcap.com/charts/bitcoin-dominance/” target=”_blank” rel=”nofollow”> CoinMarketCapbtc's share of the crypto market has increased to 60.5%, representing a substantial increase of over 3% in just one month. The surge comes as btc hits an all-time high driven primarily by investments from institutional investors.
“Today, more institutional investors are investing in bitcoin than ever before. The second factor was the political landscape, particularly Donald Trump, who became president-elect of the United States. “Donald Trump has made an impact and is said to have revised his stance on cryptocurrencies, with Elon Musk acting as a crypto-positive representative.” fixed Edul Patelexecutive director of mudrexin an interview with IndiaToday.
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On the other hand, eth dominance has fallen to 11.8%, down from 13.8% last month. The eth/btc pair hitting a year-to-date low confirms that the second-largest cryptocurrency has not performed as well as btc this year. If we look at the eth price chart for the year, the momentum has fluctuated but is still behind the btc uptrend.
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The moving average convergence divergence indicator for eth also points to some momentum struggles at critical resistance levels. Meanwhile, the Altcoin Seasonal Index, which currently has a score of 28, shows that the market does not favor altcoins. The drop in altcoins market cap compared to bitcoin further indicates that liquidity is shifting away from altcoins, including eth, towards btc.
Will ethereum pick up the pace?
eth's recovery trajectory depends on both fundamental and technical factors of the eth/btc pair. While fundamental analysis shows continued acceptance of Layer 2 solutions, the development of decentralized finance, and active participation in ethereum 2.0, technical analysis would indicate an initial support level of 0.057 btc, which could potentially act as a base. Resistance levels are at 0.065 btc and 0.070 btc, which mark critical thresholds that eth must break if it wants to regain momentum.
Closing the gap will require eth to break through resistance levels and overcome continuous network upgrades; Such moves could help the eth/btc pair regain lost ground against bitcoin.
