Ethereum [ETH] has recently hit a new low against Bitcoin [BTC], dropping below the 0.04 mark for the first time since April 2021. This drop has sparked speculation about the potential for a bullish rally in the altcoin market, signaling a possible beginning of the altcoin season.
The ETH/BTC pair reached a low of $0.0387 in the past 24 hours, marking a significant decline from previous levels seen in April 2021.
This decline underscores the continued struggle of ETH against Bitcoin and hints at a delay in the anticipated altcoin season.
Moreover, the recent downtrend in the ETH/BTC pair has revealed an extended divergence, prompting some analysts to predict a forthcoming strong pivot in the market.
On the other hand, Bitcoin dominance has surged to a new year-to-date high of 58.07% in the past 24 hours, suggesting a potential shift in market dynamics. This rise in dominance has also shown signs of a reversal pattern, potentially paving the way for increased liquidity flow into altcoins, including ETH.
Evaluating ETH’s Market Dynamics
ETH has not experienced significant capital outflows thus far. Exchange reserves, for instance, hit a new year-to-date low of 18.52 million coins on September 11 before rebounding slightly to 18.79 million coins at present, reflecting renewed selling pressure.
As of the latest data, ETH was trading at $2,298, almost mirroring its opening price from the previous week and erasing any weekly gains that had been achieved.
A closer look at on-chain activities revealed a decline in address activity, with the network registering 262,786 active addresses, the lowest count since mid-January 2024.
Despite the market uncertainties, there have been indications of ETH accumulation as prices dipped, as evidenced by the growth in whale addresses from 58.44 million coins on August 13 to 58.47 million coins on September 15. Retail addresses also saw a slight uptick from 64.94 million to 64.97 million coins during the same period, indicating increased interest from both large investors and retail traders in taking advantage of the discounted prices.