Is Ethereum About to Outperform Bitcoin? 3 Indicators Say Yes
- Ethereum trades at $3,103.47, and the ETH/BTC pair is holding support and nearing a breakout.
- Market sentiment and analyst views favor stronger near-term momentum for ETH over BTC.
- Falling BTC dominance and improving ETH technicals suggest Ethereum may outperform.
As Bitcoin (BTC) maintains its position as the leading cryptocurrency, ETH has shown conflicting trends. If Bitcoin’s dominance begins to wane, ETH may eventually emerge as the next strongest token.
Market analysts and traders are watching to see if Bitcoin losses become more evident so that an alternative coin frenzy can occur. At press time, Ethereum is trading at $3,103.47 with a decrease of 0.28% over the past 24 hours.
Tweet Highlights ETH’s Potential Breakout
Recently, market analyst Ted (@TedPillows) wrote about the relationship between ETH and BTC:
“Bitcoin’s dominance is weak; ETH is strong. If Bitcoin is on an upward trajectory to around $100,000, ETH will likely outperform it.”
Ted’s analysis indicates that Ethereum may outperform Bitcoin due to Ethereum’s current price patterns in relation to BTC and a lack of leadership within the cryptocurrency ecosystem.
Key Signals Suggesting ETH Strength
Three main indicators point to Ethereum potentially outperforming Bitcoin:
- Weakening BTC Dominance – Capital rotation into altcoins may benefit ETH.
- ETH/BTC Technical Strength – Support and resistance patterns hint at upside potential.
- Bullish Momentum – RSI and moving averages indicate trend strength is improving.
These factors create a framework for why Ethereum could see stronger relative gains in the near term.
Also Read: BitMine Boosts Ethereum Holdings With $199 Million Buy as Market Turns Bearish
Signals Indicating Ethereum Could Outperform Bitcoin
The ETH/BTC chart from TradingView shows, Ethereum’s performance is reflected directly against Bitcoin’s performance on the ETH/BTC Percentage Difference. The Percentage Difference shows the relative strength of Ethereum compared to Bitcoin, as well as how much Ethereum has pulled away from Bitcoin.
In the chart, ETH consistently bounces back from the 0.03269–0.03238 BTC support area and recently has tested the 0.03434 BTC resistance level. The moving averages (50- and 200-day), as well as the RSI readings (57.50), point to increased bullish momentum. The symmetrical triangle pattern is confirming a strong possibility for ETH to break out and outperform BTC.
Bitcoin Dominance Chart: Signs of Capital Rotation
The Bitcoin dominance chart from TradingView indicates an ongoing trend of traders shifting funds from Bitcoin to altcoins, such as Ethereum, which usually leads to stronger performance from ETH. The chart shows a gradual decline from the most recent highs for BTC’s dominance. That decline indicates that BTC is losing market share and, as such, will be experiencing more traders switching their money over to altcoins.
The decline in dominance is now at 59% and it has previously had a hard time breaking above the 60.5% level. This information indicates that BTC has no momentum to continue to gain dominance over the market. If BTC is unable to develop any further momentum, the potential exists for ETH to develop into a more powerful altcoin and continue to outperform BTC in the coming months and years.
In conclusion, the combination of weakening Bitcoin dominance, positive technical formation patterns, and increasing momentum implies that ETH has a significantly strong probability of being more profitable than BTC in the near future.
Although both assets exhibit high volatility, the combination of these three indicators suggests that ETH might provide the greatest returns over the next several weeks, and therefore should be monitored closely throughout the evolving digital assets space.
Also Read: Bitcoin, Ethereum, and Altcoins Face Mixed Week While TRON Surges to 350 Million Accounts
