The remarkable +150% surge that propelled Ethereum to significantly outperform Bitcoin has now officially stalled. After driving the recent altcoin mini-season, this vital ratio has come to a complete standstill, experiencing 40 days of stagnation. With the primary engine of the altcoin market now idling, the initial excitement is diminishing, raising serious doubts about the stability and short-term outlook for nearly every asset beyond BTC.
Is Ethereum Entering A Healthy Accumulation Phase?
The strong momentum behind altcoins has dissipated following the stagnation of the ETH/BTC ratio. Daan Crypto Trades, a full-time crypto trader and investor, has noted that after an impressive +150% rally from its low against Bitcoin, ETH’s performance has been entirely stagnant for the last 40 days. This pause directly translates into noticeable weakness across the market, with momentum-driven sentiment quickly turning negative as most altcoins begin to pull back on their previous gains.
While altcoin traders typically prefer their tokens to ascend, the analyst perceives the current shift as a necessary and potentially beneficial correction. He suggests that it’s advantageous for BTC to absorb some of the demand and liquidity once more as it works to uplift the entire market from its current slump consolidation.
Daan Crypto Trades points out that the ETH/BTC ratio is currently in “no man’s land,” suggesting he would only regain interest in the pair if it moved back above the 0.041 mark or performed a decisive retest of the 0.032 level.
However, the expert concluded that whatever ETH does in relation to BTC will remain the key indicator for the overall health of the altcoin market and the BTC Dominance trend. Hence, this crucial pair should be monitored closely.
Reversal Signals Strengthen On The 4-Hour Chart
Technical analyst GeoMetric is proclaiming the end of the market slump, basing his optimistic forecast on clear signals from his proprietary Gaussian Breakout screener. According to GeoMetric, BTC, ETH, and most altcoins have all effectively broken out of their Gaussian channels on the 4H chart. The expert sees this as a strong confirmation of a reversal, provided these assets can hold their position above the mid-line of the channel.
GeoMetric mentioned that BTC has turned bullish on nearly every major time frame except for the 3-day chart, which remains the last holdout. He has also indicated his focus is on the time frame for now. While viewing this as a relief and great start to October overall, the market has finally shifted after a challenging week, characterized by liquidations, widespread capitulation, and generally poor sentiment.
He acknowledges how hard it can be to maintain a positive outlook when the market is collapsing. “As certain as I was, it’s never easy to advocate for bulls amid the FUD and ask everyone to hold the line, and it takes a lot out of me,” GeoMetric stated.
