As 2025 winds down, investors are already eyeing 2026.
The focus is on the altcoin market, which underperformed this year. Historically, when Ethereum [ETH] leads, it often kicks off an altcoin rally. Notably, it looks like we’re starting to see signs of that rotation.
Since mid-Q2, ETH has been trending down against Bitcoin [BTC], pushing the Altcoin Season Index down to 33. But late-Q4 looks promising, with ETH/BTC potentially bottoming around 0.30, signaling a possible reversal.
Source: TradingView (ETH/BTC)
Backing this up, Ethereum dominance [ETH.D] is on the move.
Weekly, ETH.D has already posted three higher highs, closing in on 13% resistance. Meanwhile, Bitcoin dominance [BTC.D] has been chopping below 60% over the same period, reinforcing the shift toward alts.
Sure, the Altcoin Season Index hasn’t caught up yet.
However, with ETH’s Q4 ROI now nearing BTC’s -18% bleed, is this rotation more Ethereum-led than market-led? Could this be an early hint of where strategic investors are heading in 2026?
Ethereum catalysts driving early market rotation
The market is still fragile, and support levels remain at risk.
BTC, for example, is still trying to recover from the crash two months ago that knocked it down 30%. Despite some “dip-buying”, BTC hasn’t fully bounced back, showing that caution is still dominating sentiment.
Against this backdrop, Ethereum’s weekly run against Bitcoin could signal that smart money is rotating. Backing this up, a whale sold $132.5 million in BTC and scooped up $140.2 million in ETH over the past two weeks.
Source: TradingView (ETH/USDT)
Notably, the rotation is already showing in price action as well.
Ethereum has jumped roughly 15% over the past three weeks, outpacing Bitcoin’s 7% move in the same stretch. That’s more than 2x the capital flowing into ETH, clearly backed by whale rotation, as we saw above.
Add in institutional adoption ramping up, with nine new partnerships bringing ETH into mainstream use, and this rotation looks far from a fluke. Instead, it is shaping up as a solid base for ETH’s 2026 run versus BTC.
Final Thoughts
- Ethereum has been trending down against Bitcoin since mid-Q2, but late-Q4 shows signs of reversal.
- Whale activity and institutional partnerships highlight a rotation that’s more Ethereum-led, setting a solid base for ETH’s 2026 run vs. BTC.
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