- The ETH/BTC breakdown was confirmed with RSI, repeating a historical pattern where Ethereum’s weakness triggered broad altcoin rallies afterward.
- Capital rotation in crypto markets often flows from BTC to ETH, then into large-cap, mid-cap, and eventually small-cap altcoins.
- The monthly candle closes in 24 hours, and if the setup holds, traders may witness the first wave of a new altcoin cycle.
A recent shift in the BTC/ETH chart is renewing attention around the potential start of a new altseason. As the monthly candle approaches its close, Ethereum’s move is attracting renewed market scrutiny.
BTC/ETH Pair Signals Ethereum Breakdown
According to market tracker CrypFlow, the ETH/BTC pair has just broken down, a pattern seen before major altseason rallies. The breakdown, accompanied by Relative Strength Index (RSI) confirmation, comes just one day before the monthly candle closes. CrypFlow draws comparisons to historical setups, citing 2019 and 2022. In 2019, Ethereum lost ground against Bitcoin, and a wave of altcoin rallies followed. Conversely, in 2022, Bitcoin regained dominance, which saw altcoins underperform.
This recent shift, as per CrypFlow’s tweet, might represent the same early cue that has historically preceded broad altcoin rotations. The BTC/ETH chart, in this view, becomes a key market signal, suggesting a structural rotation in progress.
Market Structure Suggests Classic Rotation Setup
The altcoin market often follows a known sequence when momentum shifts from Bitcoin. CrypFlow points out that historically, market flows tend to rotate from Bitcoin to Ethereum, then to large-cap altcoins, followed by mid- and small-cap tokens. The Ethereum breakdown, while appearing bearish in isolation, may be setting the stage for this typical sequence.
Investors monitoring this rotation are likely weighing positioning strategies ahead of what could be a broader market shift. CrypFlow’s interpretation leans on past market cycles where Ethereum’s weakness was not a bearish signal but a prelude to strength across the altcoin sector.
What This Signals for the Crypto Market
If past patterns repeat, Ethereum’s recent breakdown could mark the beginning of a fresh altcoin rally. Traders may soon witness capital rotating from Bitcoin into altcoins, following the sequence outlined by CrypFlow—starting with Ethereum, then into large caps and beyond.
This development may shift market momentum across a wider range of assets. As Bitcoin’s dominance tapers off, increased volatility and price action could emerge in lower-cap altcoins. The current chart setup, according to CrypFlow, may serve as the first signal in a broader cycle transition.
