As major cryptocurrencies face significant sell-offs, investors are reportedly rotating capital into altcoins as a hedge against volatility. Data shows the broader altcoin market holding steady, but Ethereum is under particular pressure. The ETH/BTC ratio has declined 12% year-to-date, hitting 2021-level dominance, while on-chain metrics and notable sell-offs add to the negative sentiment.
Amid a broad market downturn, investors are seeking hedges in alternative cryptocurrencies. The Altcoin Season Index remains around 40, indicating quiet capital rotation beneath the surface.
Ethereum’s position appears increasingly vulnerable. Its dominance has slipped to 2021 levels, and the ETH/BTC ratio has not posted a yearly gain since 2022.
The ratio is already down 12% this year, raising questions about Ethereum’s hedge status. Concurrently, Ethereum co-founder Vitalik Buterin reportedly sold 2,779 ETH for approximately $6.22 million over three days.
On-chain data reveals growing selling pressure. Ethereum’s buy/sell delta has turned negative for the first time since the second quarter of 2025, signaling a shift in sentiment.
Despite BitMine (BMNR) accumulating ETH, the fund now holds around $7 billion in unrealized losses. Major player sell-offs are also contributing to the cautious outlook.
With yearly returns at -30%, Ethereum is underperforming other large-cap altcoins. This has traders weighing its risk against potential rewards elsewhere in the market.
The $2,100 support level has broken, putting the next key level at $2,000 at high risk. Current evidence suggests the ETH/BTC downtrend is likely to continue deeper into the first quarter.
