ETH dominance at a crossroads: A rebound towards 13% is on the horizon

The cryptocurrency market is going through a pivotal phase, and Ethereum’s dominance holds a strategic position in this context. After several months of decline, ETH dominance shows signs of slowing its decrease, opening interesting prospects for investors attentive to capital reallocation movements.

ETH Dominance: Stabilization and Positive Signals

Since the beginning of 2025, Ethereum’s dominance has experienced a period of compression. From around 18% in mid-2024, it has gradually declined to reach a low, reflecting a shift of liquidity toward other cryptocurrencies and digital assets. However, recent data (as of January 27, 2026) show that ETH dominance stands at 11.28%, indicating a possible inflection point in this downward trend.

This stabilization occurs in a context where Bitcoin maintains an overwhelming dominance of 56.43%, reinforcing the king of cryptocurrencies’ control over the overall market. The inverse relationship between BTC dominance and ETH dominance remains a key indicator for anticipating sector rotations.

Key Technical Levels to Confirm the Rebound

Technical analysis reveals critical resistance zones. Breaking through the 13% level would constitute an initial bullish reversal signal for ETH dominance. Such a breakout would confirm the end of the bearish dynamic and pave the way for an expansion of Ethereum’s market share at the expense of altcoins.

Historically, the fourth quarter has often been a quiet period for the ETH/BTC ratio. This seasonality suggests that the first quarter could be a recovery phase, where Ethereum’s dominance regains ground against Bitcoin.

Bullish Market Sentiment and the Altseason Potential

Beyond on-chain data, trader sentiment reflects a marked confidence. According to recent observations, 78.3% of traders operating in Ethereum futures display a decidedly bullish stance. This massive optimism in the derivatives market suggests expectations of a rise for ETH and, by extension, for the entire altcoin sector.

Crypto analysts recognize that Ethereum’s relative strength compared to Bitcoin could trigger an altseason in the first quarter. Such a dynamic would lead to renewed interest in alternative projects and second-tier tokens, traditionally favored during market expansion periods.

Outlook and Implications for Investors

The evolution of ETH dominance remains a reliable thermometer of the health of the altcoin market. If the 13% level is crossed, an acceleration of the bullish momentum for Ethereum would inevitably follow. Conversely, a return below 11% could signal a continuation of the capital reallocation phase toward other market segments.

The coming weeks are expected to be decisive in confirming or refuting the current optimistic outlook.