Ethereum is the second largest cryptocurrency. [ETH] The altcoin price is often a good barometer of the market.
Recent indicators suggest that the crypto- and traditional markets are experiencing divergent results.
This dual narrative—balancing bullish and bearish interpretations—has taken shape through Ethereum’s Relationship between the Russell 2000 and Bitcoin is evolving.
Russell 2000 and Ethereum break correlation
Russell 2000 (which tracks U.S. small cap stocks) has maintained historically a high correlation with Ethereum.
This relationship is often used as a guide to the price of Ethereum, which has repercussions on other altcoin markets.
However, recent price behavior indicates that there has been a significant breakdown. Ethereum, meanwhile, has been impacted by sustained pressure to sell, and its prices are hovering at $3,294.
Source: Alphractal
João Wedson, CEO of Alphractal, argues that this decoupling underscores a broader disconnect between traditional finance and digital assets.
“TradFi and crypto do not always move together, especially during bear markets or macroeconomic transition phases.”
Crypto markets have suffered particularly during this period.
Ethereum’s value has fallen by approximately $280.89billion in the market since its peak in August 2025. Meanwhile, total crypto-market capitalization has decreased by over $1 trillion.
Wedson suggested three reasons for this divergence. The movement could have been temporary, the shift could indicate a greater change in the risk climate globally, or the crypto market could be discounting the future ahead of traditional assets.
Ethereum gains against Bitcoin
Despite its divergence from equities, Ethereum is telling a different story within the crypto market—one defined by relative strength against Bitcoin.
The ETH/BTC pairing remains a popular measure of the market’s preference. It shows whether money is moving towards Ethereum or concentrating around Bitcoin.
Ethereum is currently the leader. The ETH/BTC pairing has seen a trend of increasing gains since October.
In the past, continuous increases in this ratio have often coincided with an increasing risk appetite for altcoins.
TradingView
This view is supported by momentum indicators. Money Flow Index remains within a bullish range between 50 and 80. This indicates consistent capital flows into Ethereum.
Importantly, the ETH/BTC is also a broad proxy for altcoin performances. It is not uncommon for this pair to rise in tandem with or prior to a surge of activity on the altcoin markets.
What is the future of altcoins?
Altcoin Season Index provides one of clearest indicators as to whether non-Bitcoins are gaining traction. This closely mirrors shifts observed in ETH/BTC.
As of press time, this index was at 33. It is slightly higher than its previous reading, and suggests that momentum may be building at an early stage.
CoinGlass
The move is still tentative. The move is still tentative.
Altcoins would need to continue to climb in order to have a positive outlook on the medium to long term.
Altcoins are expected to outperform Bitcoin in the short term, but gains will likely be modest.
Last Thoughts
- Ethereum is showing signs of breaking away from the Russell 2000.
- The capital rotation in Ethereum relative to Bitcoin is strengthening. This development signals potential progress.
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Source: ambcrypto.com
