Bitcoin Dominance, Dead Cross Imminent...Will it Usher in an Ethereum-centric Alt Season?

▲ Bitcoin (BTC)

As a rare dead cross formation in the Bitcoin (BTC) dominance indicator becomes imminent, the possibility of an altcoin upturn, centered around Ethereum (ETH), has been raised.

BeInCrypto reported on May 2nd that "Bitcoin dominance is approaching a dead cross on a monthly basis," analyzing this signal as a rare pattern that has historically occurred only twice. A dead cross is a structure where the long-term moving average falls below the short-term moving average, interpreted as a turning point where Bitcoin's market share weakens and funds shift to altcoins.

If this structure is completed, it is analyzed that a typical 'altcoin season' trend could emerge, with Ethereum's rise and Bitcoin's dominance decline occurring simultaneously.

Ethereum is currently trading around $2,300, consolidating within an ascending channel. The key turning point is whether it recovers the channel's midline; if it breaks above it, a structure is presented where it could rise by approximately 50% to $3,430, passing the $2,750 resistance.

Conversely, on the downside, the $2,050 area was mentioned as a major support level. This area is a zone of concentrated trading volume and is considered a key price level where buying pressure enters during a decline.

Technical signals are mixed. While Ethereum maintains its ascending channel, a decline in the Relative Strength Index (RSI) and a break from the trendline have occurred simultaneously, confirming short-term bearish signals.

Bitcoin dominance is currently experiencing resistance around the 60% level. If it breaks above 61%, further increases could lead to continued altcoin weakness, but conversely, if it is pushed back from resistance, it could drop to around 49%, raising the possibility of a full-scale fund movement.

With a structure forming where Bitcoin dominance and Ethereum price movements are intertwined, the market has entered a critical phase that will determine the rotation of altcoins.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*