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ETH dominance on shaky grounds as BTC prepares for potential upturn ETH dominance on shaky grounds as BTC prepares for potential upturn

ETH dominance on shaky grounds as BTC prepares for potential upturn

Data via Glassnode

Potential market shift looms as ETH/BTC ratio teeters

Quick Take

The ETH/BTC ratio, a critical indicator in the crypto market, precariously teeters at 0.060, signaling a potential paradigm shift in the market’s dynamics.

With the BTC/ETH dominance ratio standing at -0.04, the market is evidently still in an ETH-dominant phase, albeit rapidly declining. The data implies a cyclical pattern where ETH typically manifests an amplified dominance during bullish market scenarios, corroborating its higher beta attribute.

However, historical data reveals a contrasting trend during bear markets, as evidenced in 2016 and 2019. Bitcoin ascended to a dominant position during these periods, surpassing the green line indicator.

BTC/ETH Market Cap Dominance: (Source: Glassnode)
BTC/ETH Market Cap Dominance: (Source: Glassnode)

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