The ETH/BTC pair is showing potential for growth due to key support around 0.05 BTC and a declining U.S. Dollar Index.
Current ETH/BTC Dynamics
The ETH/BTC pair is currently near its cycle lows, but a key support level around 0.05 BTC could serve as a launchpad for growth. If Bitcoin dominance decreases, capital might flow into Ethereum, leading to a pair rebound.
U.S. Dollar Index Impact on Cryptocurrency
The U.S. Dollar Index (DXY) dropping to new lows has sparked speculation about capital moving into riskier assets like cryptocurrencies. A weakening dollar typically results in liquidity flows into Bitcoin and Ethereum. President Trump's increase in import tax added selling pressure on the U.S. dollar, pushing it back to pre-election levels. However, a notable shift has occurred: Bitcoin and the DXY have decoupled, reducing the dollar's role as a key crypto market indicator.
Bitcoin and Ethereum Market Movements
Macroeconomic catalysts remain at play. After President Trump announced a tariff break, Bitcoin reclaimed $86k and Ethereum surged past $2k. Several indicators point to a potential breakout and trend reversal in Ethereum's favor.
For a confirmed ETH/BTC reversal, a Bitcoin retracement remains a critical trigger. However, bullish conviction appears weak.
