Ethereum Momentum Rebounds While Bitcoin Shows Signs of Exhaustion

Fresh analysis from Alphractal suggests that the momentum story for Bitcoin and Ethereum is starting to diverge.

Using its Multi-Timeframe Momentum (MTM) indicator, which blends performance across 7-day, 30-day, 90-day, and 365-day horizons, the firm highlights a shift in trend strength between the two leading digital assets.

Bitcoin: High Prices, Weakening Momentum

Although Bitcoin continues to trade near record highs above $140,000, its underlying momentum has been sliding since early 2024. The MTM indicator shows that shorter-term bursts of buying are failing to align with longer-term trend strength. That mismatch implies the market’s upward drive is losing steam, even as prices remain elevated. Historically, such divergences have often preceded periods of consolidation or corrective moves.

Ethereum: Quiet Comeback Gains Strength

Ethereum, in contrast, is showing a different picture. After an extended period of weak momentum, ETH has recently built up strength across multiple timeframes. The MTM readings flipped higher in recent months, pointing to growing alignment between short-term rallies and broader structural trends. With ETH trading around $5,500, this improvement could be an early signal that the asset is entering a new cycle of outperformance relative to Bitcoin.

The Bigger Picture

In Alphractal’s framework, positive MTM values indicate strong alignment across timeframes, while negative readings highlight persistent downside pressure. Right now, Ethereum is benefiting from improving synergy across horizons, while Bitcoin’s MTM trend shows fatigue.

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Bitcoin Price Prediction: AI Models Signal Stability but September Risk Ahead

Crypto markets often move in cycles, with leadership rotating between assets. The latest MTM data suggests that Bitcoin’s dominance may be waning just as Ethereum regains momentum. If the trend continues, ETH could emerge as the relative strength play heading into the final months of 2025.