The post Could Ethereum outperform Bitcoin in 2026? KEY divergence suggests… appeared on BitcoinEthereumNews.com.

Since launch, altcoins have been trying to carve out their own identity.  Notably, 2025 is finally putting that separation on full display. Even with the Altcoin Season Index trending down, a handful of names are still managing to decouple from Bitcoin [BTC], hinting at a slow shift in market structure. Ethereum [ETH] is a prime example.  Sure, it underperformed BTC by 1.17% in Q4, but ETH has been stacking meaningful upgrades back-to-back. Against this setup, the real question is: Will this divergence finally start paying off as we head into 2026? Market rotation highlights Ethereum’s potential There’s an underlying shift happening in the market. After two consecutive monthly red candles, Bitcoin dominance (BTC.D) has fallen below the 60% resistance and is currently struggling to reclaim that level. At the same time, the Altcoin Season Index (ASI) has dropped from 43 to 37 as of writing. Normally, a falling ASI would coincide with BTC surging as investors flock to the dominant asset. This time, however, both are trending down together, suggesting the market is acting outside its usual playbook. Source: TradingView (BTC.D) According to AMBCrypto, this shift highlights ETH’s underlying strength. Even with much of the market’s capital remaining on the sidelines, ETH.D kicked off December with a 2% jump. What’s more, the ETH/BTC ratio rose 2.08%, reinforcing the thesis that Ethereum is carving out relative strength. Why does this matter? This divergence could signal a broader shift in investor behavior toward strong Layer-1s. If on-chain metrics align, could this rotation push Ethereum higher versus Bitcoin in 2026? While sentiment lags, Ethereum’s supply is tightly locked ETH staking is signaling a strong long-term commitment. On-chain metrics confirm this: ETH’s Total Value Staked (TVS) is holding steady well above 36 million, even amid broader market FUD. Put simply, investors are continuing to lock…

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Filed under: News - @ December 6, 2025 3:25 pm