The worth 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, Could 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 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 Strain
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 could be getting ready to outperform BTC. In accordance with CryptoQuant, this improvement might mark the start of the altseason — a interval the place capital rotates from Bitcoin into different crypto property.
Knowledge offered by CryptoQuant reveals that the ETH/BTC value ratio has skilled a 38% enhance previously 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 lately entered an excessive undervaluation area, based mostly 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 major margin.
Supply: CryptoQuant
CryptoQuant additionally talked about that Ethereum’s doable 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 — previously 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 growing sharply since late April. This progress spike suggests an elevated buy of ETH by ETFs relative to Bitcoin — influenced by progress catalysts akin to current community upgrades and enhancing macro surroundings.
Lastly, alternate influx knowledge demonstrates the dwindling promote stress on Ethereum in comparison with Bitcoin. CryptoQuant famous that, as of Could 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 Value At A Look
As of this writing, the value of ETH sits simply beneath $2,500, reflecting an over 3% decline previously 24 hours.
The worth of ETH on the every day timeframe | Supply: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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