The value 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, Could 13. Whereas the altcoin has considerably slowed down in the beginning of this weekend, the market confidence continues to tilt towards the continued recovery 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 could have hit its backside, suggesting that the previous is likely to be getting ready to outperform BTC. Based on CryptoQuant, this growth might 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 value ratio has skilled a 38% improve prior 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 extreme undervaluation region, 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 big margin.
Supply: CryptoQuant
CryptoQuant additionally talked about that Ethereum’s potential backside once more Bitcoin is additional accentuated by the upper demand and lowered promoting stress for ETH in comparison with BTC. As an illustration, 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, exhibiting the bigger propensity of buyers to purchase ETH as a substitute of Bitcoin.
In the meantime, buyers 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 equivalent to current community upgrades and bettering macro surroundings.
Lastly, trade influx knowledge demonstrates the dwindling promote stress on Ethereum in comparison with Bitcoin. CryptoQuant famous that, as of Could 2025, the ETH exchange inflow 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 worth of ETH sits simply beneath $2,500, reflecting an over 3% decline prior to now 24 hours.
The value of ETH on the every day timeframe | Supply: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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