Ethereum dominance (ETH.D) reached 14.98% in August, marking its highest level since September 2024. This milestone coincided with the altcoin's new all-time high of $4,946 yesterday.
Meanwhile, Bitcoin dominance (BTC.D) continued to fall. This momentum divergence has generated significant forecasts from analysts, who anticipate major market changes soon.
Bitcoin vs. Ethereum: capital rotation generates market forecasts
Data from BeInCrypto Markets showed that the second largest cryptocurrency surpassed the first in the last month. The value of Bitcoin fell 5% in the last 30 days.
At the same time, Ethereum appreciated 23.4%. Additionally, Ethereum's dominance has also been increasing since July, while BTC.D has followed the opposite path. In fact, yesterday, ETH.D reached an annual peak of 14.98%.
At the time of this analysis, it adjusted to 14.54%. Meanwhile, BTC.D was recorded at 58.2%, its lowest point since January 2025.
ETH.D vs. BTC.D performance. Source: TradingView
This momentum highlights a growing trend of capital rotation. The buying trends of large investors further emphasize this.
In a recent post on X (formerly Twitter), a crypto analyst highlighted that since July, large investors from Binance have been consistently buying ETH through spot and futures orders.
"Large investors behave differently and often prefer to enter positions after a positive trend has been well validated, which is clearly observable here, as these orders only started after the trend reversal. This strong accumulation, therefore, supports the upward movement and is likely to provide enough momentum to push ETH towards the $5,000 level," said Darkfost.
Large investors accumulating Ethereum. Source: X/Darkfost_Coc
Meanwhile, BeInCrypto also reported that several old Bitcoin wallets are changing positions and selling their long-held BTC holdings in favor of Ethereum. And it's not just retail. Institutional preference for ETH has been quite significant.
Public companies have been increasing their exposure to Ethereum, spending billions of dollars to acquire ETH. Additionally, the ETH balance on exchanges has dropped to a new low of 18.3 million.
Ethereum Supply on Exchanges. Source: CryptoQuant
This reduction suggests that investors are holding rather than selling, a behavior often associated with confidence in future price appreciation.
"Ethereum supply shock loading," stated analyst Ted Pillows in a statement.
Under these conditions, some analysts suggest that the capital rotation from Bitcoin to Ethereum may extend to altcoins, broadening the market rally.
"Every Alt cycle starts the same way: Bitcoin shows fatigue. Ethereum wakes up. The big rotation unfolds," posted an analyst.
FIRST – Bitcoin season
NOW – Ethereum season
NEXT – Altseason
Brace yourself for the mega pump
— Ash Crypto (@Ashcryptoreal) August 24, 2025
Meanwhile, Benjamin Cowen, CEO and founder of Into The Cryptoverse, previously predicted that after Ethereum's all-time high, Bitcoin could make a comeback.
"However, the rotation back to BTC is likely to be initiated by a BTC correction in September and will continue in a BTC rally in October," Cowen mentioned.
Although forecasts may vary, the outlook remains broadly optimistic. However, it remains to be seen whether other altcoins or Bitcoin will be the main beneficiaries in the future.
The article Ethereum Dominance Hits Annual High: What's Next for the Market? was first seen on BeInCrypto Brazil.
