The phenomenal growth of ETH against BTC, which fueled a mini altcoin season, has started to lose strength. The ETH/BTC pair gained 150%, but now for 40 days has been stagnating. And while the main engine of the alt market is idling, euphoria is gradually fading. This raises serious questions about the short-term prospects for almost all assets except Bitcoin itself.
Ethereum enters accumulation — or is this a signal for a pullback?
After the ETH/BTC pair stalled, the strong impulse in altcoins evaporated. According to trader and investor Daan Crypto Trades, Ethereum’s rise against Bitcoin by 150% from the bottom ended in complete stagnation, which has lasted for 40 days. This immediately affected the entire market: momentum-driven sentiment declined, and most alts began to roll back the positions gained in recent months.
Although altcoin traders would prefer the rally to continue, the analyst considers the current pause necessary and even beneficial. In his opinion, it’s good that liquidity is returning to Bitcoin — this may help pull the entire market out of prolonged consolidation.
ETH is losing momentum against BTC. Source: TradingView
Daan Crypto Trades calls the current position of the ETH/BTC pair a “no man’s zone.” He explained that he will only be interested in the asset if it returns above 0.041 — or after a clear retest of the 0.032 level.
Nevertheless, the expert emphasizes that ETH’s behavior against BTC remains the main indicator of the health of the entire altcoin market and the Bitcoin dominance trend. This pair is key. It should be monitored especially closely.
On short timeframes, the market signals a reversal
Technical analyst GeoMetric announces the end of the market pullback, relying on signals from his proprietary Gaussian Breakout indicator. According to him, BTC, ETH, and most altcoins have already moved beyond the Gaussian channels on the four-hour chart. If assets hold above the channel’s midline, this will be a strong confirmation of a reversal.
The analyst added that Bitcoin has turned bullish on almost all timeframes except the 3-day — this is the last “bearish bastion.” He is currently focused on this horizon. GeoMetric calls what is happening a relief and an excellent start to October, especially after a tough week of liquidations, capitulation, and extremely negative market sentiment.
He admits that maintaining confidence amid a total drop is difficult.
“No matter how confident I am, it’s hard to write positive posts when the market is crashing. It takes a lot of energy,” he admitted.
ETH is trading at $4,373 on the daily chart. Source: TradingView
