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 firstly of this weekend, the market confidence continues to tilt towards the continued recovery of the ETH worth.
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 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 Diminished Promoting Strain
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 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.
Information offered by CryptoQuant exhibits that the ETH/BTC worth 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 extreme undervaluation region, 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 attainable 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 — previously week, displaying the bigger propensity of traders to purchase ETH as an alternative of Bitcoin.
In the meantime, traders are additionally favoring Ethereum via exchange-traded funds (ETFs) purchases, with the ETF holdings ratio growing sharply since late April. This progress spike suggests an elevated buy of ETH via ETFs relative to Bitcoin — influenced by progress catalysts akin to latest 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 Might 2025, the ETH exchange inflow ratio has dropped to its lowest stage since 2020, suggesting the altcoin is going through 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 previously 24 hours.
The worth of ETH on the day by day timeframe | Supply: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
Editorial Course of for bitcoinist is centered on delivering completely researched, correct, and unbiased content material. We uphold strict sourcing requirements, and every web page undergoes diligent evaluate by our staff of high expertise consultants and seasoned editors. This course of ensures the integrity, relevance, and worth of our content material for our readers.
