Ethereum’s value against Bitcoin has dropped to its lowest level since 2020, sparking discussions about a potential shift toward higher-performing altcoins. Some traders believe that this decline could signal an upcoming altcoin season, while others argue that Bitcoin may continue to dominate the market.
ETH/BTC Ratio as an Altcoin Season Indicator
According to economist and crypto trader Alex Kruger, now might be the right time for investors to rotate out of Ethereum and into more volatile altcoins. In a post on X (formerly Twitter) on March 12, Kruger stated:
“If still stuck on ETH, it is likely a good time to dump it to buy a higher beta altcoin.”
The ETH/BTC ratio, which measures Ethereum’s strength relative to Bitcoin, currently sits at 0.02281—its lowest level in nearly five years, according to TradingView data. Historically, a bottoming ETH/BTC ratio has been considered a signal for the beginning of an altcoin season.
Benjamin Cowen, founder of Into The Cryptoverse, also weighed in on this trend. On February 14, he noted that for an altcoin season to begin, ETH/BTC needs to bottom out and start trending higher.
At present, Bitcoin and Ethereum are both trading below key psychological price levels. Bitcoin is at $83,667, staying under the $100,000 mark since February 5, while Ethereum hovers around $1,907, having slipped below $2,000 on March 10.
Meanwhile, the Crypto Fear & Greed Index stands at 45 (Fear), marking an 11-point increase from the previous day, indicating shifting market sentiment.
Will Bitcoin Continue to Dominate?
While some traders anticipate a resurgence in altcoins, others believe Bitcoin’s dominance may persist.
Hansolar, a pseudonymous crypto trader and adviser for Pear Protocol, suggested in a March 13 post on X that Bitcoin season may last all year. He pointed out that in 2023, altcoin season lasted just 16 days, occurring when Bitcoin’s dominance briefly dropped from 61% to 55% between November 20 and December 5, before rebounding to 59% by December 21.
Looking back, when Ethereum hit its all-time high of $4,800 in November 2021, Bitcoin’s dominance was around 42%. However, with Bitcoin currently holding a stronger market position, some traders believe that altcoins may not see a breakout anytime soon.
