Compared to Bitcoin's previous strong surge, Ether has long been sluggish, but it is finally showing signs of revival.
Market data shows that Ether rose more than 4% today (26th), while Bitcoin fell 1.5% during the same period, dropping below $95,000. Ether's performance even exceeded the overall market benchmark CoinDesk 20 index, which saw an increase of 0.5% during the same time.
In the past two days, investors have started to shift funds towards smaller, higher-risk cryptocurrencies, resulting in strong performance from these competing coins, while Bitcoin's surge since Trump's election has stagnated.
The "Ether/Bitcoin ratio (ETH/BTC ratio)" measuring the strength of Ether relative to Bitcoin dropped to 0.0318 last week, the lowest since March 2021, indicating weak performance from Ether; however, as of the time of publication, the ratio has risen by 15% to 0.3660.
Digital asset hedge fund QCP stated in their report:
The market clearly expects Bitcoin to consolidate until December, with investor attention shifting to Ether in the short term.
QCP pointed out that in the options market, Ether's risk reversal is heavily skewed towards front-end call options, while Bitcoin's call options have only started to attract more bids since the end of this December. This indicates that traders expect Ether to perform well in the short term, while Bitcoin will accelerate its rise next year.
Hedging derivatives level one trading company Arbelos Markets co-founder and analyst Joshua Lim stated: "We are seeing funds from native cryptocurrency hedging funds and family offices rotate from Bitcoin into Bitcoin."
According to data from Farside Investors, the Ether spot ETF listed in the United States experienced a net outflow of funds for six consecutive days before seeing a net inflow last Friday, which included $99 million flowing into BlackRock's ETHA.
Analyst Kaiko stated in a report on Monday that the holders of ETHA include "the most renowned companies in finance," including the $80 billion hedge fund Millenium.
In the near future, the upside potential for Ether may be greater than that of Bitcoin. Popular cryptocurrency trader Pentoshi noted that the ETH/BTC ratio dropped to a key support level last week and rebounded, while last week's K-bar showed a trend reversal.
Pentoshi posted on social platform X: "The low point may have already occurred, at least a short-term reversal is coming."
Paul Howard, a senior executive at cryptocurrency trading company Wincent, stated that Bitcoin is currently far above its daily moving average, and as investors digest the significant rise since Trump's election, Bitcoin may continue to consolidate in the near term.
"Is 'Second Brother' about to start rising? Analysis: Funds are rotating from Bitcoin into Ether" was first published on (Block客).
