Altcoin dominance, excluding Ethereum and stablecoins, has dropped to 18.45%, approaching the critical support level that has historically preceded major altcoin rallies.
Key Support Levels Under Pressure
Altcoin dominance without Ethereum and stablecoins has declined to 18.45%, a level that has repeatedly marked the bottom in past market cycles. This key area was described as a 'multi-year support', observed in 2018 (18.5%), 2019 (18.2%), 2021 (18.3%), and forecasted for 2024 (18.6%). If this support breaks, altcoins could face accelerated devaluation.
Ethereum Masks Deeper Weakness
Ethereum's strong market cap position continues to conceal the underlying fragility of the broader altcoin market. Reports from Alpha Signals indicate that dominance metrics including ETH remain artificially inflated, while those excluding it show a consistent erosion in market share for the rest of the altcoin sector. Altcoins, excluding both, are rapidly losing liquidity and attention as capital concentrates in high-liquidity, high-trust assets.
Historical Patterns Indicate Altseason Setup
Despite widespread bearish pressure, the history of previous cycles may offer some hope. The altcoin universe has entered a phase of accumulation similar to patterns observed in 2016 and 2019 when major altcoin rallies occurred. However, with Bitcoin dominance on the rise and smaller altcoins falling out of favor, market conditions remain grim.
Altcoin dominance remains under pressure, and amid rising market volatility and negative global factors, traders are reallocating investments, which may threaten further decline in interest toward altcoins.
