Compared to the explosive surge of Bitcoin earlier, Ethereum has long been sluggish, but it is finally showing signs of revival.
Market data shows that Ethereum rose more than 4% today (26th), while Bitcoin fell 1.5% during the same period and dropped below $95,000. Ethereum's performance even outperformed the overall market benchmark, the CoinDesk 20 index, which rose 0.5% during the same period.
In the past two days, investors began shifting funds to smaller, higher-risk cryptocurrencies, causing these altcoins to perform well, while Bitcoin's surge since Trump's election has stagnated.
The 'Ethereum to Bitcoin ratio (ETH/BTC ratio)' fell to 0.0318 last week, the lowest since March 2021, indicating Ethereum's weak performance. However, as of the time of writing, the ratio has risen 15% to 0.3660.
Digital asset hedge fund QCP stated in a report:
The market clearly expects Bitcoin to consolidate until December, with investors' attention shifting to Ethereum in the short term.
QCP pointed out that in the options market, Ethereum's risk reversal is heavily skewed toward front-end call options, while Bitcoin's call options only began to attract more bids starting from the end of December this year. This indicates that traders expect Ethereum to perform well in the short term, while Bitcoin will not see a significant increase until next year.
Joshua Lim, co-founder and analyst at the risk-hedging derivatives trading firm Arbelos Markets, said: 'We are seeing funds from cryptocurrency-native hedge funds and family offices rotating from Bitcoin into Ethereum.'
According to data from Farside Investors, the Ethereum spot ETF listed in the U.S. saw its first net inflow of funds last Friday after experiencing six consecutive days of outflows, with $99 million flowing into BlackRock's ETHA.
Analyst firm Kaiko stated in a report on Monday that ETHA's holders include 'the most well-known companies in finance,' including the $80 billion hedge fund Millennium.
In the near future, the upward potential of Ethereum may exceed that of Bitcoin. Popular cryptocurrency trader Pentoshi stated that the ETH/BTC ratio fell to a key support level last week and rebounded, while last week's candlestick showed a trend reversal.
Pentoshi posted on the social platform X, stating: 'The low 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 well above its daily moving average, and as investors digest the surge since Trump's election, Bitcoin may continue to consolidate for some time.
