In August 2025, the cryptocurrency market is showing signs of a shift favoring altcoins, particularly Ethereum (ETH), over Bitcoin (BTC). Bitcoin's market dominance has declined by 6.55% this month, indicating a rotation of capital into altcoins amid renewed speculative momentum. Technical indicators support this trend: ETH and BTC are testing their exponential moving averages (EMA), with ETH breaking above the 365-day moving average—a pattern previously associated with major rallies and altcoin seasons in 2017 and 2021. The monthly Moving Average Convergence Divergence (MACD) for ETH versus BTC shows a bullish crossover, signaling the start of an altcoin season. Analysts note that Bitcoin dominance has experienced bearish crosses in past cycles, which preceded substantial altcoin market cap increases—70 times in 2017 and 5 times in 2021. Market observers highlight that liquidity is primed to flow into Ethereum plays as ETH breaks out, supported by institutional buying from firms like Fundstrat. This capital rotation follows a cycle where Bitcoin leads initially, followed by Ethereum, and then broader altcoins. Overall, the current market structure and technical signals suggest that altcoins are entering a strong growth phase, often referred to as "alt season."