After a long downtrend, dominance formed a base in the bottom region and then initiated an upward trend by making rising lows. This indicates that capital is slowly starting to shift back to ETH.

However, there's an important detail in the final section. Price (dominance) is being rejected around 11.5%, initiating a short-term downward correction. This pullback is currently moving directly towards the rising trend line (approximately the 10.7–10.8 band).

▪️ As ETH dominance increases, liquidity in the market shifts to ETH. ▪️ As ETH dominance decreases, liquidity spreads to altcoins.

The current pullback doesn't seem like a trend break; it appears more like a correction following an upward move. Therefore, the key factor is whether this trend line will be maintained.

The impact of this situation on #Ethereum and the overall altcoin market will be directly related to liquidity distribution. While dominance is retreating, altcoins may perform relatively better in the short term. However, if dominance remains in an upward trend as it is now, this strengthening will be temporary rather than permanent. As long as the overall trend in ETH dominance remains upward, market leadership will continue to belong to ETH.

Dominance is still structurally in the process of recovering from its bottom. During this process, it is thought that some divergent coins within the altcoin market will accompany ETH.

In summary, the chart says:

The market is not yet in a completely altcoin-focused phase. Although liquidity flows to altcoins from time to time, the overall structure points to a period where ETH is increasing its weight within the system again. This shows that altcoin performance continues to largely depend on the strength of ETH. $ETH #Ethereum