ETH/BTC Ratio Hints Bearish Altcoin Trend

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ETH/BTC ratio expected to decline, boosting BTC dominance.
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Bearish outlook for altcoins, seen as a precursor to future gains.
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Traders eye BTC dominance peaking at 65%–72% for altcoin season signals.

ETH/BTC Ratio Points to Bearish Outlook

Renowned crypto analyst Altcoin Sherpa has stirred the market with a bold prediction, suggesting that the ETH/BTC ratio is poised to decline further, while Bitcoin dominance is set to rise. The analysis points to a challenging period ahead for altcoins. The chart, spanning from 2025 to 2026, illustrates a historical downward trend in the ETH/BTC ratio, with recent movements reinforcing a bearish outlook. This shift indicates that Bitcoin (BTC) may continue to outperform Ethereum (ETH) in the near term, potentially sidelining altcoin gains.

Altcoin Weakness Seen as “Necessary Evil”

Sherpa’s take is that this bearish phase for altcoins is a “necessary evil” to pave the way for higher shitcoin prices in the future. The chart highlights a significant drop in the ETH/BTC ratio, coupled with increased BTC dominance, suggesting capital is flowing back into Bitcoin. This trend could compress liquidity for altcoins, a critical factor for their growth. However, the analyst hints at a potential silver lining: a future altcoin season might emerge once BTC dominance peaks and stabilizes.

a lot of ppl talking about it but $ETHBTC is prob going to go lower and btc dominance is going to go higher. this is bearish altcoins but a necessary evil for higher shitcoin prices. $BTC continues to go higher than $ETH probably pic.twitter.com/eRhpIWkHa6
— Altcoin Sherpa (@AltcoinSherpa) September 29, 2025

Dominance Levels Become Key Signal

The crypto community has responded with mixed views. Some, like @factoroftime, argue that BTC’s upside is limited at 40%, favoring ETH and altcoins for bigger gains. Others, such as @langeriuseth, suggest a strategic approach, advocating for riding USD uptrends and waiting for ETH/BTC to form higher lows before diving into altcoins. This debate underscores the complexity of current market dynamics, with traders closely watching BTC dominance levels between 65%–72% as a key indicator. The market remains on edge, with Sherpa’s analysis serving as a crucial guide for investors navigating this evolving landscape.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.