Ethereum Defies Gravity as Bitcoin Stumbles—Here’s Why

While Bitcoin trips over regulatory FUD and miner sell-offs, Ethereum’s pumping like it’s mainnet launch season again. The smart contract giant’s rally isn’t just altcoin season nostalgia—institutional DeFi flows and that long-awaited supply shock from EIP-1559 are finally flexing.

Meanwhile, Bitcoin maximalists are too busy arguing about ordinals to notice their ’digital gold’ is leaking value. Classic hedge fund move—when in doubt, rotate into the asset that actually has utility beyond speculative Twitter threads.

Why is Ethereum pumping?

The recent price hikes in Ethereum could be attributed to several factors. One of the key reasons is Ethereum’s price trajectory, which has been through a major downtrend and lag in the past couple of years.

Earlier this year, particularly in January 2025, when leading crypto assets like bitcoin (BTC) and Solana (SOL) were making news highs, Ethereum was far behind in the race. Given that market players are now seeking underperforming crypto assets, Ethereum stood out among all with a strong potential for 2025.

Another key factor behind Ethereum’s price surge is recent regulatory developments, which have pushed Ethereum as a hub to launch decentralized applications (dApps) and tokens and leverage its infrastructure to build blockchain projects.

The capital rotating from Bitcoin into Ethereum could also be a reason behind spikes in ETH price. It has been historically seen that most investors relocate their profits into undervalued crypto assets, and Ethereum could be at the center this season.

Also read: Ripple’s RLUSD Stablecoin to Get Listed on Bitget’s Web3 Zone