A significant shift is underway in the world of cryptocurrency: Ethereum is gaining momentum, surpassing Bitcoin’s dominance. Ethereum Surges as BTC. This intriguing change isn’t just noise; it may be a significant change in the market cycle. Ethereum outperforms Bitcoin. The Altseason Index and ETH/BTC ratios are both showing green, indicating that the long-awaited cryptocurrency season may have arrived.
Why Ethereum’s Rise Is Important for Altcoin Season
It has been wonderful to see Ethereum’s price rise over the last few weeks. Meta-entities like Glassnode and Crypto Rover indicate that Ether has increased by approximately 45% in May, which is significantly more than Bitcoin’s single-digit gains. This difference shows that investors are changing their minds. Bitcoin’s dominance, which once exceeded 65% of the total market cap of all cryptocurrencies, has dropped to the low 60s. In the past, this kind of drop, especially in the mid-60s, has often led to capital moving to altcoins.
Technical signs back up this story. The ETH/BTC ratio recently broke past the 0.025 lock-in mark, which is a level of resistance near 0.026. This implies the emergence of trends unseen since early 2021. Analysts like Cointelegraph’s Trader Tardigrade point out classic chart patterns like cup-and-handle or bull flags that show the ETH/BTC combination might go up by 30% to 55%. In the past, these types of breakouts have typically led to larger cryptocurrency rallies, with some assets increasing hundreds of times their original value.
How BTC Dominance Affects the Market
The Bitcoin dominance ratio is a good indicator of the maturity of altcoins, as it shows the percentage of the total cryptocurrency market capitalisation that BTC comprises. When BTC’s share of the market drops below 60%, money often moves into Ethereum, Solana, XRP, Cardano, and other cryptocurrencies. In late 2024, similar drops caused huge altcoin rallies in 2017 and 2020–21, setting a historical precedent for how this can happen again.
Models like the Alt Season Readiness Score, which combines BTC dominance, the ETH/BTC ratio, altcoin market cap, and liquidity measurements, are showing high readings. This is often a sign that altseason spikes are coming. João Wedson of Alphractal predicts that the next altcoin rise could begin in June 2025, when Bitcoin’s dominance is expected to drop from the mid-60s to approximately 62 per cent.
On-Chain and Market Metrics Show the Whole Picture
Ethereum’s on-chain activity is increasing, supporting this rotation theory. According to Glassnode data, the number of daily active addresses has increased by 12%, and the open interest in ETH derivatives has risen to over $25 billion. Ethereum outperforms Bitcoin, These signs show that both retail and institutional investors are moving toward ecosystems built on Ethereum.
The Altseason Index, which tracks the top 100 altcoins against Bitcoin over a rolling 90-day period, has a market cap of more than $1.22 trillion. This indicates that altcoins are gaining strength. Currently, nearly 80% of the major cryptocurrencies have outperformed Bitcoin over the last three months, a classic symptom of capital rotation.
Key Structural Features and Macro Drivers
Ethereum’s “Pectra” upgrade, the largest since the Merge, has strengthened its on-chain foundations by making it easier to scale, lowering gas fees, and encouraging staking. This proves that Ethereum can be used as “programmable money.” These improvements in technology make investors feel better about Ethereum’s long-term value.
The big stories are also changing. The easing of tensions between the U.S. and China, along with speculation of a dovish shift in Federal Reserve policy, has made people more willing to take risks, which has helped Ether and altcoins continue to rise.
Possible Risks: When Altseason Ends
Even though the data is good, analysts advise against getting too comfortable. Bitcoin’s dominance may level off around the mid-60s due to macroeconomic headwinds, or Ethereum could encounter trouble if global indicators shift to a risk-off stance. According to Van de Poppe of Binance Square, the timing of the altseason in 2025 may not follow the same patterns as in the past.
If Ethereum’s price drops below the current profit zone of around $2,300 to $2,500, it could trigger numerous liquidations, potentially halting progress. Ethereum outperforms Bitcoin, And even if ETH is strong, an altseason won’t guarantee that all altcoins will perform well; tail tokens with weaker fundamentals may struggle.
What This Cycle Means for Investors
Many experienced crypto investors employ a staged strategy, beginning with Bitcoin, then transitioning to Ethereum, and ultimately to other altcoins. Traders should monitor the dominance of BTC, the ratios of ETH to BTC, and the volume of altcoins. These are all signs that align with classic breakout situations right now.
The rise in the Ethereum blockchain, coupled with the expansion of DeFi and institutional staking, presents significant opportunities in the current cycle. However, risk-aware investors should monitor macro data, on-chain liquidity, and chart resistance levels to prevent premature entry.
What to Expect Based on the Past
Bitcoin dominance fell sharply before big altcoin periods in both the 2017–18 and 2020–21 bull cycles. Breakouts in ETH/BTC were early signs. The same phenomenon is repeating itself in 2025: Bitcoin rises, Ethereum and altcoins surge even higher, and the macroeconomic outlook improves. Today’s altseason may be different due to staking models, crypto ETFs, and on-chain maturity, but it still appears strong.
