The worth of Ethereum (ETH) continued to impress over the previous week, briefly touching the $2,700 stage (for the primary time in practically three months) on Tuesday, Might 13. Whereas the altcoin has considerably slowed down initially of this weekend, the market confidence continues to tilt towards the continued restoration of the ETH value.
Particularly, the worth of Ethereum is being tipped to take a step additional in its restoration by outperforming Bitcoin (the world’s largest cryptocurrency by market capitalization) over the following few months. This overwhelming potential of the “king of altcoins” overtaking BTC begs the query: Is the altseason on the horizon?
ETH Sees Elevated Investor Demand And Decreased Promoting Stress
In its newest weekly report, market analytics platform CryptoQuant revealed that the worth of Ethereum relative to Bitcoin might have hit its backside, suggesting that the previous is perhaps getting ready to outperform BTC. In accordance with CryptoQuant, this improvement may mark the start of the altseason — a interval the place capital rotates from Bitcoin into different crypto belongings.
Knowledge offered by CryptoQuant exhibits that the ETH/BTC value ratio has skilled a 38% enhance up to now week. This constructive rally got here after the ratio fell to its lowest since January 2020, marking a historic relative backside for ETH and springboard for the altcoin season.
Moreover, CryptoQuant highlighted that Ethereum lately entered an excessive undervaluation area, primarily based on the ETH/BTC MVRV (market worth to realized worth) metric, for the primary time since 2019. When this occurred in 2017, 2018, and 2019, ETH went on to outperform BTC by a big margin.
Supply: CryptoQuant
CryptoQuant additionally talked about that Ethereum’s potential backside once more Bitcoin is additional accentuated by the upper demand and diminished promoting strain for ETH in comparison with BTC. As an example, the relative ratio of ETH’s spot buying and selling quantity to Bitcoin jumped to 0.89 — its highest worth since August 2024 — up to now week, displaying the bigger propensity of buyers to purchase ETH as an alternative of Bitcoin.
In the meantime, buyers are additionally favoring Ethereum by means of exchange-traded funds (ETFs) purchases, with the ETF holdings ratio rising sharply since late April. This development spike suggests an elevated buy of ETH by means of ETFs relative to Bitcoin — influenced by development catalysts equivalent to latest community upgrades and bettering macro atmosphere.
Lastly, change influx information demonstrates the dwindling promote strain on Ethereum in comparison with Bitcoin. CryptoQuant famous that, as of Might 2025, the ETH change influx ratio has dropped to its lowest stage since 2020, suggesting the altcoin is dealing with considerably decrease promoting strain than BTC.
Ethereum Worth At A Look
As of this writing, the worth of ETH sits simply beneath $2,500, reflecting an over 3% decline up to now 24 hours.
The worth of ETH on the day by day timeframe | Supply: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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