As the world awaits U.S. President Donald Trump’s announcement on proposed retaliatory tariffs later today, crypto markets continue to show signs of uncertainty. In a recent post shared on social media platform X, crypto analyst Rekt Capital emphasized that Bitcoin (BTC) dominance may be poised to rise further, potentially worsening conditions for altcoins, including Ethereum (ETH).
Bitcoin Dominance Uptrend To Continue, Analyst Says
According to Rekt Capital, Bitcoin dominance is set to climb further, possibly reaching as high as 64%. This level of BTC dominance is historically significant, as seen from the peaks observed in 2017 and 2020.
For the uninitiated, BTC dominance refers to the ratio of the premier digital asset’s market cap to the total crypto market cap. A rising BTC dominance typically means that liquidity is rotating from small market cap coins—known as altcoins—into BTC.
As a result, altcoins like ETH may exhibit subdued price action as BTC dominance rises. Fellow crypto analyst Ali Martinez highlighted ETH’s weak performance against BTC, suggesting that the second-largest cryptocurrency by market cap is likely to face further declines in the near term.
In an X post, Martinez shared an inverse monthly ETH/BTC chart illustrating a cup-and-handle pattern forming. While this pattern is generally viewed as bullish, in an inverse chart, it indicates ETH could fall to as low as 0.00240—an almost 90% decline from its current price relative to Bitcoin.
A decline in ETH would likely drag down other altcoins, causing a sharp spike in BTC dominance. However, some analysts view the prevailing pessimism surrounding ETH as a potential buying opportunity.
Ethereum: The Most Asymmetric Bet?
In a separate X post, crypto trader Merlijn The Trader noted that ETH’s price has returned to its 2021 levels, trading close to $1,900 at the time of writing. However, the trader added that multiple factors could work in ETH’s favor by 2025.
For instance, ETH’s narrative could strengthen with the potential approval of an ETH exchange-traded fund (ETF) for staking, rising institutional demand, and improving fundamentals. The analyst referred to ETH as the “most asymmetric bet right now.”
That said, ETH still has a long way to go before confirming a bullish trend reversal. In a recent analysis, Martinez noted that based on pricing bands, ETH must break through a crucial resistance level at $2,300 before targeting higher levels. At press time, ETH is trading at $1,901, down 1.1% in the past 24 hours.
