Bitcoin Gains Dominance While Ethereum Struggles To Recover

Bitcoin keeps hitting records while Ethereum sinks into a weakness that is starting to seriously worry the market. In one year, ETH has lost more than 35 % against BTC, despite the massive return of capital to cryptos. Behind this drop, several alarming signals emerge: increased selling pressure, rising ETH reserves on Binance and growing institutional dominance of bitcoin. This dynamic raises a central question on the market: Is Ethereum definitively losing its status as the leader of altcoins?

Ethereum is stuck in a downtrend against bitcoin

The ETH/BTC pair continues to send worrying signals for investors. Indeed, Ethereum still moves below a descending trendline active since 2022.

It should be noted that the pair faced rejection at an important technical zone combining the 0.382 Fibonacci retracement and the 50-month exponential moving average.

Here are some important points :

• ETH/BTC shows a decline of more than 35 % over one year ;
• The pair has fallen back below the 20-month EMA around 0.034 BTC ;
• A potential target toward 0.0176 BTC is mentioned ;
• This scenario would represent nearly 40 % more decline ;
• The current structure recalls the nearly 70 % drop observed between 2024 and 2025.

The scenario is all the more worrying as it resembles a configuration already observed before Ethereum’s previous major drop against bitcoin. This relative weakness occurs while bitcoin continues to attract institutional flows and maintains a much stronger momentum in the crypto market. On the chart, analysts are now watching ETH’s ability to defend its historical supports to avoid an acceleration of selling pressure.

ETH reserves on Binance fuel market fears

Beyond the technical signals, several on-chain data reinforce concerns around Ethereum. ETH reserves held on Binance have reached 3.62 million ETH, about 24.6 % of all ethers on exchanges. An increase in exchange reserves is often interpreted as a potential selling pressure signal, with investors transferring assets to platforms to prepare for possible sales. Conversely, bitcoin reserves continue to decline, indicating BTC holders favor long-term holding.

This divergence also reflects a profound shift in the dominant crypto market narrative. Bitcoin now benefits from massive institutional support driven by spot ETFs, corporate treasuries and capital flows from Wall Street.

Ethereum, meanwhile, seems to be gradually losing the narrative advantage linked to its deflationary asset status. This market evolution prompts some analysts to question Ethereum’s place in the coming months versus bitcoin, which has become the institutional investors’ reference asset.

The future will now depend on Ethereum’s ability to rebuild its own momentum capable of attracting new flows. Technical stabilization could offer market support, but bitcoin’s growing dominance is already shifting sector balances. If this trend continues, the current cycle could mark a new stage in crypto hierarchy, with BTC more dominant than ever versus historical altcoins.