Cryptocurrency Market Reversal: Ether Surges 8%, Bitcoin Cash Ratio Rises, DOGE and SHIB Show Bullish Patterns

Ether (ETH) surged over 8%, breaking a long-term downtrend, while the Bitcoin Cash (BCH) to Bitcoin (BTC) ratio rose 11%, indicating a potential market shift. Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are showing bullish reversal patterns. These changes occur as Bitcoin nears $100,000, with increased trading volumes and a slight decline in BTC dominance, suggesting a shift towards altcoins. The broader altcoin market, including Sui and Polkadot, is gaining, supported by macroeconomic factors like stable interest rates and institutional inflows.

Ether Breaks Key Resistance, Surges Over 8%

Ether has emerged as a standout performer in the latest market rally, climbing more than 8% in a single day and decisively breaking above a key descending trendline that had capped prices since December 2024. The breakout, confirmed by both traditional candlestick and three-line break charts, marks a technical shift from bearish to bullish momentum.

According to technical analysis by CoinDesk’s Omkar Godbole, the breakout invalidates the prior downtrend and opens the door for ETH to test resistance levels between $2,300 and $2,400—zones that previously acted as support in October and November 2024. The move is supported by a surge in trading volume and renewed institutional interest. On-chain data from Lookonchain revealed that Abraxas Capital recently acquired 49,644 ETH through Binance and Kraken, indicating confidence in Ethereum’s near-term strength.

This price action aligns with broader market sentiment. As of 12:06 PM IST on May 8, 2025, Ethereum was trading at $1,903, up 4.1% on the day, according to CoinMarketCap. The global crypto market capitalization rose 2.52% to $3.06 trillion, with Ethereum contributing significantly to the gains.

Bitcoin Cash-Bitcoin Ratio Breaks Year-Long Downtrend

In a parallel development, the BCH/BTC ratio has risen 11% this week, breaking above a trendline that had defined a year-long bear market. This breakout suggests that Bitcoin Cash is beginning to outperform Bitcoin, a notable shift given BTC’s dominant market position.

The ratio’s breakout is not merely a statistical anomaly—it reflects a change in market structure. Historically, such ratio breakouts have preceded periods of altcoin outperformance, particularly when accompanied by strong technical setups and increased trading activity. The move also coincides with a slight decline in Bitcoin’s market dominance, which fell to 64.1% despite BTC’s price nearing the $100,000 milestone.

Bitcoin itself was trading at $98,816, up 2.3% on the day, with a market cap of $1.96 trillion and a 54.6% surge in trading volume to $50.38 billion. While stablecoins accounted for 90.8% of all transactions, the shift in the BCH/BTC ratio suggests that traders are beginning to rotate capital into alternative assets.

DOGE and SHIB Form Bullish Bottom Patterns

Meme coins Dogecoin and Shiba Inu are also showing signs of a trend reversal. Both assets have formed “rounding bottom” patterns on their daily charts—a classic technical formation that signals a shift from a bearish to a bullish market. This pattern is characterized by a gradual transition from lower highs to higher lows, indicating increasing buying interest.

Dogecoin, in particular, has broken out of a diamond bottom pattern, a rare but powerful bullish reversal signal. According to technical analyst Trader Tardigrade, the breakout sets a price target of $0.29. As of May 8, 2025, DOGE was trading with strong momentum, supported by a 35% increase in trading volume to over $1.2 billion within 24 hours. Key resistance levels to watch include $0.16 and $0.20, while support lies at $0.13.

Shiba Inu also posted a 4.5% gain, with its market cap rising 5% and technical indicators aligning with a bullish reversal. The synchronized bottoming patterns in both DOGE and SHIB suggest that retail interest is returning to the meme coin segment, often a leading indicator of broader altcoin enthusiasm.

Market Rotation Evident as Altcoins Gain Ground

The broader altcoin market is experiencing a resurgence. Sui and Polkadot led the gains with 7.8% and 7.7% increases, respectively. Chainlink and Avalanche each rose 5%, while Cardano, Solana, and Tron posted gains between 2% and 5%. This widespread strength across altcoins indicates a rotation away from Bitcoin dominance and into higher-beta assets.

The shift is further supported by macroeconomic conditions. The Federal Reserve’s decision to hold interest rates steady, combined with expectations of future rate cuts and liquidity injections from China, has created a favorable backdrop for risk assets. Analysts from Bitget and Mudrex noted that institutional inflows, ETF demand, and whale accumulation are contributing to the sustained rally.

Technical Indicators Confirm Trend Shift

The technical landscape across multiple assets supports the narrative of a market trend shift. Ether’s breakout above its December downtrend, the BCH/BTC ratio’s reversal, and the bullish bottom formations in DOGE and SHIB all point to increasing risk appetite among traders.

The three-line break chart for Ether, which filters out market noise and focuses on trend changes, confirms the breakout as durable. Similarly, the BCH/BTC ratio’s move above its long-term trendline is a statistically significant event, often preceding periods of altcoin outperformance.

Meanwhile, the rounding bottom patterns in DOGE and SHIB are textbook signals of accumulation phases transitioning into uptrends. These patterns are particularly reliable when accompanied by rising volume, as is currently the case.

Cryptocurrency Market Reversal: Ether Surges 8%, Bitcoin Cash Ratio Rises, DOGE and SHIB Show Bullish Patterns

Key Updates

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