Ethereum’s price has been looking pretty good lately, briefly hitting $2700 earlier this month—its highest point in almost three months. Even though it’s cooled off a bit this weekend, the overall feeling is that Ethereum is poised for a strong recovery. Many believe it’s about to outperform Bitcoin in the coming months. Could this mean altseason is on the horizon?
Ethereum: Increased Demand, Less Selling
CryptoQuant, a market analytics platform, recently reported that the Ethereum-to-Bitcoin price ratio might have hit bottom. This suggests Ethereum is ready to outperform Bitcoin. This could signal the start of altseason—a period where investors shift their focus from Bitcoin to other cryptocurrencies.
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A Big Jump: The ETH/BTC price ratio jumped 38% last week after hitting its lowest point since January 2020. This low point is considered a historically significant bottom for Ethereum.
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Undervalued Ethereum: CryptoQuant also pointed out that Ethereum is currently extremely undervalued compared to Bitcoin, based on the ETH/BTC MVRV (market value to realized value) metric. This hasn’t happened since 2019, and in the past (2017, 2018, and 2019), it led to Ethereum significantly outperforming Bitcoin.
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Buying Ethereum, Not Bitcoin: Investors seem to be favoring Ethereum. The ratio of Ethereum’s spot trading volume to Bitcoin’s reached its highest point since August 2024, showing a clear preference for buying ETH. ETF purchases are also heavily favoring Ethereum.
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Less Selling Pressure: Data shows that the selling pressure on Ethereum is much lower than on Bitcoin. Exchange inflow data for Ethereum is at its lowest since 2020, indicating significantly less selling pressure.
Ethereum’s Current Price
At the time of writing, ETH is trading just under $2500, down about 3% in the last 24 hours.