According to analytics firm CryptoQuant, Ethereum (ETH), the leading altcoin, has likely bottomed against Bitcoin (BTC).
The firm has noted that the ETH/BTC ratio has already skyrocketed by a whopping 38% from its multi-year low.
This signals that the cryptocurrency is currently experiencing growing demand and declining selling pressure.
Ethereum's sudden comeback could pave the way for a new altcoin season, according to the analytics firm.
At press time, Ethereum (ETH) is changing hands at $2,584 after adding 1.9% over the past 24 hours.
The market cap of ETH has swelled to well over $300 billion, which puts the cryptocurrency way above XRP, its biggest non-stablecoin competitor.
Meanwhile, Bitcoin dominance has taken a significant hit, currently teetering on the verge of collapsing below the 60% level. It is likely going much lower if another altcoin season is actually about to start.
After Bitcoin dominance reached a multi-year peak of nearly 65%, ETH dominance climbed to nearly 10%. At the same time, the dominance of stablecoins dropped to roughly 6%.
For now, however, this is still a Bitcoin-driven cycle, according to analytics firm Glassnode. Ether and altcoins remain well below their historic dominance peaks.
Moreover, there are some signs that Ether's renewed momentum might already be waning. For instance, Ethereum exchange-traded funds recorded nearly $40 million worth of outflows on Tuesday, according to data provided by SoSoValue. The cumulative flows of these products stand at less than $2.5 billion.
While impressive, Ether's recent rally against Bitcoin is barely noticeable on longer timeframe charts. The altcoin has been steadily underperforming the digital gold for years, with the ETH/BTC pair recently plunging below 0.20.
Vladislav Sopov
U.Today Editorial Team