Ethereum (ETH) may be preparing for a fresh rally as bitcoin’s market dominance continues to decline. Historical data shows that ETH often hits a cycle peak when bitcoin’s share of the total crypto market falls to around 40%.
$ETH is about to break $4,000, and things are heating up fast.
Here’s why:
Ethereum is up 80% in the past 30 days
But it’s still 25% away from the 2021 cycle peak.
Historically, $BTC dominance needs to dip to around 40% for $ETH to hit its cycle peak.
Right now, BTC.D is… pic.twitter.com/omEwjXU4SV
— Lark Davis (@TheCryptoLark) July 28, 2025
Currently, BTC dominance (BTC.D) sits at approximately 60.91%, down from recent highs. The ongoing decline mirrors trends seen in previous bull cycles, fueling speculation that ETH could be approaching a significant breakout.
Historical Pattern Supports Possible ETH Breakout
In 2021, ETH surged more than 238% as BTC.D dropped from over 60% to below 40%. A similar trend may be forming again, hinting at the possibility of another major ETH rally.
On Monday, Ethereum traded above $3,900, having risen nearly 80% over the past 30 days. Despite the strong rebound, it remains about 25% below its November 2021 all-time high.
Crypto analyst Lark Davis recently shared a chart showing that ETH typically rallies when Bitcoin dominance declines. He notes that capital often rotates into ETH and altcoins as BTC.D drops—a dynamic that could position Ethereum for another breakout.
“$ETH is about to break $4,000, and things are heating up fast,” he tweeted.
Institutional Inflows Add to ETH Momentum
Notably, the potential for a breakout is further supported by growing institutional interest in ETH. Spot Ethereum ETFs in the United States attracted significant inflows in recent days.
Between July 21 and July 25, ETH ETFs brought in about $1.85 billion in net inflows, marking the second-highest weekly total since their launch. Leading the pack was BlackRock’s ETHA, which drew $440.10 million during the period. BlackRock manages over $10 trillion in assets, making its participation especially notable.
Institutional activity extends beyond ETFs. Nasdaq-listed blockchain firm BTCS Inc. has also deepened its exposure to Ethereum, acquiring 14,240 ETH (approximately $55.2 million). The latest purchase brings its total holdings to 70,028 ETH, further signaling confidence in Ethereum’s long-term potential.
Ephraim Emmanuel | July 23, 2026
