ETH/BTC hits 5-year low as trader suggests rotation into stronger alts
Ethereum's value against Bitcoin has hit its lowest level since mid-2020, with a crypto trader suggesting that it might be time to shift into higher-performing altcoins.
“If still stuck on ETH, it is likely a good time to dump it to buy a higher beta altcoin,” economist and crypto trader Alex Kruger said in a March 12 X post.
*ETH/BTC ratio is an altcoin season indicator*
“If the market goes down, you’ll likely lose equally in both cases, but if it goes up, you’ll likely outperform significantly and can then swap into BTC,” Kruger opined.
The ETH/BTC ratio — which shows Ether’s relative strength compared to Bitcoin — is sitting at 0.02281, its lowest level in nearly five years, according to TradingView data.
Bitcoin Dominance is 0.02281 at the time of publication. Source: TradingView
Both the leading cryptocurrencies by market cap are trading below key psychological price levels. Bitcoin is trading at $83,667 — having remained below the $100,000 level since Feb. 5 — while Ether (ETH) is at $1,907, floating below $2,000 since March 10.
Meanwhile, the Crypto Fear & Greed Index, which measures overall market sentiment, read a “Fear” score of 45, up 11 points from yesterday’s score.
The Crypto Fear & Greed Index is reading a “Fear” score of 45. Source: alternative.me
Many in the crypto industry see the ETH/BTC ratio “bottoming out” as a sign that altcoin season could kick off. On Feb. 14, Into The Cryptoverse founder Benjamin Cowen said on X to get an altcoin season, “ETH/BTC needs to bottom and start trending higher.”
*Bitcoin season could dominate*
However, other indicators suggest that altcoin season may not come so soon, and Bitcoin (BTC) may continue to hold market share in the near term.
CoinMarketCap’s Altcoin Season Index — which bases the performance of the top 100 altcoins relative to Bitcoin over the past 90 days — reads a score of 13 out of 100, leaning more toward Bitcoin season.
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Pseudonymous crypto trader and Pear Protocol adviser Hansolar said in a March 13 X post that it will be Bitcoin season “all year round.”
The trader said altcoin season was only 16 days last year and happened when Bitcoin’s Dominance dropped from 61% on Nov. 20 to 55% on Dec. 5 before rebounding to 59% by Dec. 21.
At the time of publication, Bitcoin dominance stands at 62.15%, according to TradingView.
When Ether hit its all-time high of $4,800 in November 2021, Bitcoin's dominance was approximately 42%.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.