Ethereum (ETH) Rebounds 36.3% in May, Targeting $10K–$12K as Bitcoin (BTC) Hits $200K

Ethereum's 2025 comeback is gaining steam. Despite early-year losses and recent underperformance against rivals like XRP, top analyst VirtualBacon reveals why ETH remains the strongest altcoin—backed by fundamentals, ETF approval, and a bullish breakout against Bitcoin.

May saw a strong rebound of 36.3% in Ethereum (ETH), diverging sharply from Bitcoin (BTC) despite the latter’s better overall performance since November 2024.

As the world’s second-largest cryptocurrency continues its recovery from early-year losses and recent underperformance against rivals like XRP, top analyst VirtualBacon reveals why he believes the bulkier coin is still the strongest - and why it’s setting up for a 2025 altcoin comeback.

Altogether, the altcoin market is having a moment in 2025, with a 15.59% surge since the start of this month. Among the best performers over the past 30 days are Ethereum (ETH) at +52.1%, Solana (SOL) at +29.7%, XRP at +15.8%, and BNB at +9.2%.

However, in the past 24 hours, Ethereum has shown some weakness compared to its peers, slipping 2.2% while XRP rose 3.6%.

Despite early setbacks, the world’s second-largest cryptocurrency is showing signs of a comeback in 2025. After a rocky start to the year with four straight monthly losses (January to April), top analyst VirtualBacon says Ethereum is finally showing signs of recovery.

In contrast, Bitcoin has surged over 50.96% since November 5, while Ethereum has barely moved - up just 2.07%. But May brought some relief, with ETH rising 36.3% to reach $2,449.99.

One key bullish signal is emerging from the ETH/BTC pair. Since January 1, ETH dropped 32.81% against BTC. But since May 8, it has bounced over 28.25%, including a 32.3% jump between May 8 and 10.

According to VirtualBacon, this rebound from multi-year support levels could be the start of a broader altcoin season.

He says no other altcoin ticks all these boxes at the same time. VirtualBacon adds that Ethereum still holds the edge in powering stablecoins, Real World Assets (RWAs), and the DeFi ecosystem, despite rising competition from Solana.

Most importantly, Ethereum is the only altcoin with an approved spot ETF, adding a significant layer of institutional credibility.

VirtualBacon blames the Federal Reserve’s Quantitative Tightening (QT) for Ethereum’s sluggish growth. He believes ETH will break out once the Fed pauses QT - potentially in Q3 or Q4 2025.

If Bitcoin hits $200K-$250K, he expects Ethereum to rally towards $10K-$12K in late 2025 or early 2026.

Currently, Ethereum is trading at 0.02396 BTC, leaving plenty of room for upside.