The ETH/BTC trading pair is currently at a crucial point and is on the verge of forming a Death Cross pattern on the weekly chart. This development could signal a shift in market sentiment, affecting Ethereum (ETH) and other altcoins.

A Death Cross occurs when a short-term moving average crosses below a long-term moving average, usually indicating a bearish sentiment with sustained low performance or higher risk aversion. In the case of the ETH/BTC trading pair, this formation might suggest decreased demand for ETH and other altcoins compared to Bitcoin, a trend typically seen during periods of low altcoin market performance.

Historically, the cryptocurrency market has seen alternating dominance between Bitcoin and altcoins. Particularly during altcoin seasons, bullish trends in the ETH/BTC pair suggest investors are taking more risks by moving from Bitcoin to altcoins.

Data from TradingView reveals that the ETH/BTC trading pair has declined by approximately 10% since the year began, currently resting at the 0.048 level. This downward trajectory has raised concerns among market participants, hinting at a potential shift in market dynamics.

Singapore's top crypto firm, QCP Capital, has pointed out that the ETH/BTC pair is testing a critical support level post a drop below 0.05. Furthermore, the consistent selling of significant amounts of ETH calls, accompanied by reduced volatility, suggests a downward pressure on Ethereum's price and possibly other altcoins.

Market sentiment is further reflected in Deribit, a prominent derivatives exchange, where Ethereum put options, offering protection against price declines, hold higher premiums than call options at various expiration dates. This imbalance in options pricing, differing from the more bullish perspective on Bitcoin options, implies a bearish outlook for ETH in the near term.