The value of Ethereum (ETH) continued to impress over the previous week, briefly touching the $2,700 stage (for the primary time in almost three months) on Tuesday, Might 13. Whereas the altcoin has considerably slowed down at first of this weekend, the market confidence continues to tilt towards the continued restoration of the ETH worth.
Particularly, the value 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 subsequent 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 Lowered Promoting Stress
In its newest weekly report, market analytics platform CryptoQuant revealed that the value of Ethereum relative to Bitcoin might have hit its backside, suggesting that the previous may be making ready to outperform BTC. In line with CryptoQuant, this growth may mark the start of the altseason — a interval the place capital rotates from Bitcoin into different crypto belongings.
Information offered by CryptoQuant exhibits that the ETH/BTC worth ratio has skilled a 38% improve prior to now week. This optimistic 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 not too long ago 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 decreased promoting stress for ETH in comparison with BTC. For example, the relative ratio of ETH’s spot buying and selling quantity to Bitcoin jumped to 0.89 — its highest worth since August 2024 — prior to now week, displaying the bigger propensity of traders to purchase ETH as an alternative of Bitcoin.
In the meantime, traders are additionally favoring Ethereum by exchange-traded funds (ETFs) purchases, with the ETF holdings ratio rising sharply since late April. This progress spike suggests an elevated buy of ETH by ETFs relative to Bitcoin — influenced by progress catalysts similar to current community upgrades and enhancing macro setting.
Lastly, alternate influx information demonstrates the dwindling promote stress on Ethereum in comparison with Bitcoin. CryptoQuant famous that, as of Might 2025, the ETH alternate influx ratio has dropped to its lowest stage since 2020, suggesting the altcoin is dealing with considerably decrease promoting stress than BTC.
Ethereum Worth At A Look
As of this writing, the value of ETH sits simply beneath $2,500, reflecting an over 3% decline prior to now 24 hours.
The value of ETH on the day by day timeframe | Supply: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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