When ETH/BTC Ratio Flashes This Signal, Traders Watch for the Next Bull Run Crypto Move

bridge_anxiety · 2026-01-05T13:49:00+00:00

The Ethereum-to-Bitcoin ratio hints at a potential market shift as a crossover between the 100-period SMA and EMA signals a bearish trend, yet historically foreshadows altcoin rallies. Current consolidation may suggest a bottoming phase, offering opportunity for altcoin recovery in the coming months.

bridge_anxiety

2026-01-05 13:49:00

Abstract generation in progress

The Ethereum-to-Bitcoin ratio is sending a message that’s caught the attention of technical analysts. Based on recent weekly chart observations, the crossover between the 100-period Simple Moving Average (SMA100) and 100-period Exponential Moving Average (EMA100) has triggered what traders historically recognize as a bearish confirmation—yet this same pattern preceded major altcoin rallies in both 2020 and 2018.

Why This Technical Setup Matters

At current levels with Bitcoin trading near $92.73K (up 1.63% in 24 hours) and Ethereum at $3.16K (up 0.54%), the ETH/BTC pairing is consolidating after extended weakness. This consolidation phase isn’t necessarily a continuation signal; rather, it represents a potential structural bottom where momentum could shift from distribution to accumulation.

The SMA100 and EMA100 crossover works as a market transition indicator. When these moving averages align in a specific pattern, they often mark the point where smart money transitions from exiting positions to re-entering at better prices. History suggests this isn’t just technical noise—previous instances of this setup preceded explosive bull run crypto cycles that lasted months.

The 2026 Altcoin Recovery Narrative

Technical analysts point out that the current consolidation mirrors conditions seen in late 2017 and early 2019, both of which preceded significant altcoin outperformance periods. If the pattern holds, the next 12-18 months could see altcoins stage a meaningful recovery against Bitcoin, creating opportunities for diversified crypto portfolios.

The key insight: this isn’t about predicting exact timing, but recognizing the setup. When SMA/EMA crossovers form after prolonged downtrends, the subsequent expansion phase—when it arrives—tends to be sharp and extended. Traders and investors watching this ratio are essentially waiting for the pattern to confirm before positioning accordingly.

ETH-3,32%

BTC-2,17%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.