Ethereum prices have skyrocketed to around $4,000, surpassing the value of other altcoins in the market. ETH is rising, but other tokens like XRP, Solana, and others remain the same, and in fact they are losing value in ETH pairs. This week, Altcoins lost another 4% against Ethereum.
The Ethereum textbook breakout, surpassing the continued resistance and bullishness, is mostly sitting in the opening of the first chart. Increases and RSI increase check momentum and check momentum. ETH is currently well above the important moving average, suggesting a strong trend. However, the total 3/ETH chart showing ETH control rate has collapsed, confirming the pain Altcoin users have experienced.
Ethereum has been significantly outpaced by Altcoins, but this trend has been worsened. When capital is concentrated on the most liquid and fundamentally sound assets (in this case Ethereum), this type of relative strength divergence is a general indicator. This is caused by many factors. The new institutional interest in Ethereum is probably the result of yields or ETF development.
Many altcoins have a poor foundation and no fresh stories. Fund rotation has not yet happened as the markets develop from speculative theatre to major movements. XRP, SOL and other cryptocurrencies, even if they remain stable under USD conditions, risk losing value when measured in ETH. In other words, if you hold the ALT of your preference, you’re not doing well with Ethereum.
This trend may continue in the future, unless Altcoins experience critical catalysts. A break above $4,000 for Ethereum will likely widen the gap. Ethereum domination must be closely monitored by investors hoping for the Altcoin season. If that doesn’t change immediately, low-cap assets can experience additional pain.