After a lengthy period trailing behind Bitcoin, Ethereum (ETH) has recently surged ahead, increasing more than 44% from its low of $2,373 in July to over $3,526. This surge can be attributed to an increase in institutional interest, particularly following reports that Peter Thiel, former co-founder of Palantir and PayPal, acquired 9% of an Ethereum Treasury company.

ETH/BTC Breakout Hints at a Structural Trend Shift

Ethereum’s performance hints at a shift in market dynamics, as the ETH/BTC ratio has started to show signs of recovery, having recently broken through the 0.02629 BTC resistance level. Some analysts suggest that if the ETH/BTC maintains its upward momentum, Bitcoin’s dominance in the market may have peaked.

“If ETH/BTC can maintain its bullish bias, then there is a 99% chance BTC Dominance has topped.” – Matthew Hyland, crypto analyst, via X

This sentiment underscores the potential shift in prioritization within the crypto market, moving towards Ethereum as key indicators suggest a long-term trend change.

ETH/BTC Ratio

Bitcoin Dominance Drops, Opening the Door to Altcoin Season

Ethereum has been bolstered by a return of institutional interest, with Ethereum ETFs enjoying over $256 million in net inflows this July. Conversely, while Bitcoin ETFs saw larger inflows of $404 million, the growth rate of Ethereum’s ETF inflows relative to its market cap is remarkable.

Market Shift

Bitcoin’s dominance has diminished by over 5.4%, dropping below an important ascending trendline and settling at 62.47%. Should this trend persist, the future cycle could see altcoins, particularly Ethereum, taking center stage in the market’s growth.

What Comes Next for ETH?

An upward break above the 0.038 BTC resistance could solidify Ethereum’s market resurgence, attracting further institutional investment. With favorable ETF flows and increased investor sentiment, Ethereum is poised for a significant move in the near future.