A significant divergence is emerging in the momentum trends of the cryptocurrency market’s two leading assets, Bitcoin and Ethereum. New analysis from Alphractal, utilizing its proprietary Multi-Timeframe Momentum (MTM) indicator, suggests that while Bitcoin’s price remains elevated, its underlying trend strength is waning. In contrast, Ethereum is quietly gathering robust positive momentum, potentially signaling a notable shift in market leadership within the digital asset landscape.
Despite Bitcoin currently trading above $112,000, Alphractal’s MTM indicator—which synthesizes results from 7, 30, 90, and 365-day performance—reveals a consistent decline in its momentum since early 2024. This weakening is characterized by short-term buying waves failing to align with the asset’s longer-term trend strength. Historically, such discrepancies between high prices and diminishing momentum have often preceded periods of market consolidation or price corrections, warranting a cautious outlook among investors.
In stark contrast to Bitcoin, Ethereum is demonstrating a discernible resurgence. After an extended period of subdued momentum, ETH has seen its MTM values steadily climb over recent months, indicating a strengthening alignment between its short-term rallies and broader structural trends across multiple time horizons. With Ethereum trading around $5,500, this improving synergy could signify the early stages of the asset entering a new cycle of outperformance relative to Bitcoin.
Within Alphractal’s analytical framework, positive MTM values reflect a strong congruence between different time horizons, indicating sustained upward pressure, while negative values point to persistent downward pressure. The current data illustrates Ethereum benefiting from enhanced market synergy, whereas Bitcoin’s trend exhibits increasing fatigue. This dynamic suggests a potential rebalancing of dominance within the crypto markets, with Ethereum poised to potentially assume a more prominent role through the latter half of 2025, challenging Bitcoin’s long-held market leadership.
Sources
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.