Ethereum vs. Bitcoin: Could 2026 Be ETH's Year for a Comeback?

As we approach the end of 2025, investors are already turning their attention to what 2026 might hold.

Key Takeaways

Ethereum has historically led altcoin rallies and may do so again in 2026.
The Altcoin Season Index currently indicates a downturn, yet Ethereum's price action suggests a possible reversal.
Ethereum's market dominance is increasing, hitting higher highs and suggesting a shift away from Bitcoin dominance.
Increased institutional interest and whale activity are driving the positive sentiment towards Ethereum.

ETH BTC Source: TradingView (ETH/BTC)

Since mid-Q2 of 2025, ETH has faced a decline against BTC, leading the Altcoin Season Index to a low of 33. However, signs of optimism are emerging this late in the year, with the ETH/BTC pair possibly bottoming out at around 0.30, which could indicate an upcoming reversal.

Ethereum's dominance, referred to as ETH.D, is on the rise. In recent weeks, ETH.D has reached three higher highs, approaching a resistance level of 13%. In contrast, Bitcoin's dominance (BTC.D) has remained around 60% but has been fluctuating negatively, reinforcing the trend towards altcoins.

While the Altcoin Season Index has not yet reflected this shift, Ethereum's return on investment (ROI) for Q4 is becoming comparable to Bitcoin's -18% decline. This raises the question: Is this rotation being driven more by Ethereum than by general market trends? This could provide an early indication of where strategic investors aim to position themselves in 2026.

Whales & institutions bet on Ethereum - Could 2026 be its year vs. Bitcoin?

In the world of cryptocurrencies, Ethereum (ETH) is showing signs that it may soon lead an altcoin rally against Bitcoin (BTC) as the market enters the new year. Recent data suggest that Ethereum is gaining momentum, which could indicate a potential turnaround after a challenging year for altcoins. Caution remains prevalent, but certain indicators point towards a positive shift, particularly for Ethereum.

Ethereum's Driving Factors for Market Rotation

The cryptocurrency market remains delicate, with support levels still vulnerable. Bitcoin, for instance, is still on the mend following a significant crash two months ago that resulted in a 30% drop. Even with attempts to buy the dip, BTC has not fully recovered, indicating that a sense of caution still prevails.

Amid this fragility, Ethereum's recent gains against Bitcoin could signal a rotation of smart capital. Evidence supporting this includes a whale who sold $132.5 million in BTC and acquired $140.2 million in ETH within the last two weeks.

Ethereum Source: TradingView (ETH/USDT)

The positive shift in Ethereum's price action is becoming evident, as it has surged about 15% over the last three weeks, significantly outpacing Bitcoin's 7% increase during the same period. This demonstrates that more than twice the capital is being funneled into Ethereum relative to Bitcoin, indicating strong whale influence.

Moreover, institutional adoption of Ethereum is accelerating, with nine new partnerships that enhance its mainstream appeal. These factors contribute to a solid foundation for ETH's anticipated performance in 2026 against BTC.

Final Thoughts

While uncertainty remains in the market, Ethereum's gradual emergence as a potential leader amid challenging conditions hints at an exciting year ahead. The dynamics between Ethereum and Bitcoin could pave the way for significant developments in the cryptocurrency landscape in 2026.