Ethereum Prepares to Flip Bitcoin—Altcoin Rally Inbound as ETH Gains Momentum
Ethereum’s technical setup screams breakout as ETH/BTC charts form a bullish wedge—just as institutional money starts circling the altcoin markets. Forget ’digital gold’—smart contracts are stealing the spotlight.
Key signals: Rising staking yields, ETF whispers, and that classic ’altseason’ smell in the air. Meanwhile, Bitcoin maximalists clutch their spreadsheets tighter.
Warning: Past performance guarantees nothing in crypto-land, where ’fundamentals’ often lose to memes and leveraged traders chasing the next green candle.
ETH Sees Increased Investor Demand And Reduced Selling Pressure
In its latest weekly report, market analytics platform CryptoQuant revealed that the price of Ethereum relative to Bitcoin may have hit its bottom, suggesting that the former might be preparing to outperform BTC. According to CryptoQuant, this development could mark the beginning of the altseason — a period where capital rotates from Bitcoin into other crypto assets.
Data provided by CryptoQuant shows that the ETH/BTC price ratio has experienced a 38% increase in the past week. This positive rally came after the ratio fell to its lowest since January 2020, marking a historical relative bottom for ETH and springboard for the altcoin season.
Furthermore, CryptoQuant highlighted that Ethereum recently entered an extreme undervaluation region, based on the ETH/BTC MVRV (market value to realized value) metric, for the first time since 2019. When this occurred in 2017, 2018, and 2019, ETH went on to outperform BTC by a significant margin.
CryptoQuant also mentioned that Ethereum’s possible bottom again Bitcoin is further accentuated by the higher demand and reduced selling pressure for ETH compared to BTC. For instance, the relative ratio of ETH’s spot trading volume to Bitcoin jumped to 0.89 — its highest value since August 2024 — in the past week, showing the larger propensity of investors to buy ETH instead of Bitcoin.
Meanwhile, investors are also favoring Ethereum through exchange-traded funds (ETFs) purchases, with the ETF holdings ratio increasing sharply since late April. This growth spike suggests an increased purchase of ETH through ETFs relative to Bitcoin — influenced by growth catalysts such as recent network upgrades and improving macro environment.
Finally, exchange inflow data demonstrates the dwindling sell pressure on Ethereum compared to Bitcoin. CryptoQuant noted that, as of May 2025, the ETH exchange inflow ratio has dropped to its lowest level since 2020, suggesting the altcoin is facing significantly lower selling pressure than BTC.
Ethereum Price At A Glance
As of this writing, the price of ETH sits just beneath $2,500, reflecting an over 3% decline in the past 24 hours.
