Ethereum Gains Strength Against Bitcoin, Hints at Possible Altcoin Revival

A shift in market dynamics may be underway, as new data suggests Ethereum is beginning to outpace Bitcoin after a prolonged period of underperformance.

Data from blockchain intelligence platform CryptoQuant reveals that Ethereum’s value relative to Bitcoin has surged by 38% in just a week.

This sharp rally, which pushed the ETH/BTC ratio to its highest level in two months, could herald the start of a broader altcoin recovery.

The ETH/BTC ratio, a key metric for tracking the comparative strength of the two largest cryptocurrencies, recently hit its lowest point since early 2020.

However, traders say that similar lows have historically been followed by strong rebounds for Ethereum and other altcoins.

CryptoQuant analysts note that this ratio entered a deep undervaluation zone not seen since 2019, a period that preceded previous market cycles where Ethereum sharply outperformed Bitcoin.

At the same time, there has been a noticeable uptick in Ethereum’s trading activity.

ETH spot volume has risen significantly compared to BTC, reaching its highest ratio since August 2024. At the same time, the volume of Ethereum sent to exchanges has dropped to a multi-year low, signaling a decline in selling pressure.

These developments suggest that investors are accumulating and holding rather than exiting positions, typically a bullish signal.

Meanwhile, inflows into Ethereum-focused ETFs have accelerated since late April, indicating growing institutional confidence in the second-largest cryptocurrency.

Analysts attribute the renewed interest to recent improvements in Ethereum’s scalability with the Shanghai upgrade and a more favorable macroeconomic backdrop.

If these trends continue, the current market structure could pave the way for Ethereum—and altcoins more broadly—to regain momentum after months of trailing behind Bitcoin.