Ethereum Surges Past Bitcoin: ETF Momentum and Technical Breakouts Fuel the Rally

The crypto hierarchy is getting a shake-up. Forget the king—Ethereum is making its own crown.

The ETF Effect: More Than Just Hype

While Bitcoin's ETF approval was a landmark event, Ethereum's potential spot ETF narrative is building a different kind of fire. It's not just about institutional validation; it's about utility meeting Wall Street's ledger. The market is betting that Ethereum's foundational role in decentralized finance presents a growth story that pure digital gold can't match. Traders are pivoting, sensing a catch-up play with real momentum.

Charts Don't Lie: The Technical Edge

On the screens of every serious trader, Ethereum's price action is telling a compelling tale. It's consistently outperforming on key momentum indicators and showing remarkable resilience at higher support levels. Where Bitcoin's moves sometimes feel like a tug-of-war, Ethereum's recent rallies have displayed cleaner breakouts—the kind that technical analysts dream about. It's bypassing resistance levels that seemed solid just weeks ago.

This isn't a fluke. The relative strength is becoming a pattern, suggesting a fundamental shift in capital allocation within the digital asset space. Some whales are quietly rebalancing, a move typically reserved for traditional equity portfolios but now applied to crypto—because nothing says 'modern finance' like using century-old strategies on decade-old assets.

The race is on. Bitcoin won't fade quietly, but for now, Ethereum holds both the narrative and the numbers. In a market obsessed with the next big thing, the second-biggest is delivering a masterclass in momentum.

In brief

• Ether outperforms bitcoin in recent weeks, both technically and fundamentally.
• Spot ETFs on ETH recorded $360M net inflows, compared to only $120M for BTC.
• This dynamic suggests a capital rotation in favor of Ethereum, which regains the short-term upper hand.
• If conditions hold, a target of $3,900 for ether is now considered.

Flows reverse : ETH attracts capital at BTC’s expense

In the last two weeks, financial products backed by Ether recorded net capital inflows sharply contrasting with those of bitcoin.

Indeed, spot ETFs on ETH attracted $360 million in net inflows, compared to only $120 million for BTC ETFs, three times more. This sudden imbalance reflects a temporary but significant change in investor preferences. It also validates the thesis of a capital rotation in favor of Ether.

This favorable dynamic for ETH is also observed in its structural outperformance against bitcoin. Here are the key elements to remember :

• Massive inflows to ETH spot ETFs : +$360M in two weeks, versus +$120M for BTC ;

• Technical momentum in favor of ETH : the asset surpassed a 20-day high above $3,200, validating a bullish breakout ;

• BTC lagging behind : it awaits a strong signal, with a decisive technical close above $96,000 still absent ;

• The ETH/BTC comparison : the gap widens in favor of Ether, which regains the short-term upper hand technically.

In summary, ETH benefits from a context where capital is redeploying in its favor, reinforced by technical signals indicating a clear trend change. Conversely, Bitcoin remains under pressure and has not yet validated a comparable bullish setup.

Technical signals supporting

Beyond institutional moves, Ether’s dynamic is also supported by renewed interest from retail investors.

It should be noted that a turning point occurred on November 21, when the price of ETH fell below $2,700, triggering a wave of purchases by retail investors. This behavior recalls previous episodes, notably spring 2023, where an initial accumulation phase by retail preceded a more pronounced correction, followed by a prolonged rebound.

Technical indicators also support the thesis of a moderate bullish continuation. Ether’s Net Unrealized Profit/Loss (NUPL) currently stands around 0.22, which corresponds to a zone of balance, neither euphoric nor bearish.

Furthermore, as long as this indicator remains above 0.20, sentiment stays favorable for a rebound whenever catalysts appear. Graphically, ETH/BTC has broken upwards out of a 30-day consolidation zone and has regained its 200-day moving average, a zone historically coinciding with prolonged periods of ETH outperforming BTC.

The hypothesis of Ethereum at $10,000 surfaces again. The momentum is there, but nothing is guaranteed. Between speculative appetite and investor caution, the trajectory remains dependent on upcoming signals.

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