Ethereum’s native token, Ether (ETH), is demonstrating significant strength against Bitcoin (BTC), with the ETH/BTC trading pair surging over 50% since reaching multi-month lows in April. This rally has pushed the pair to its highest level in four months, breaking through several key technical resistance levels.
From a technical standpoint, ETH/BTC has confirmed a breakout from a “bull flag” pattern, a chart formation that typically signals continued upward momentum. The move gained strength with rising trade volumes and was further solidified as the pair climbed above its 200-day exponential moving average (EMA) for the first time in over a year. This long-term trend indicator is now acting as a new support level. If this support holds, technical analysis suggests Ether could rally another 30% against Bitcoin, potentially reaching a target of 0.035 BTC by August or September.
Market analysts have noted this shift in momentum. “The breakout at 0.02425 was crucial,” stated analyst Michaël van de Poppe, adding that the broader altcoin market will likely “follow Ethereum in the momentum.” Chartist VirtualBacon echoed this sentiment, pointing out that Ether is forming higher lows against Bitcoin for the first time since 2023, signaling that “momentum is shifting.”
This outperformance is underpinned by strong fundamental factors, most notably a surge in institutional interest. According to a recent report from CoinShares, Ethereum investment products have recorded 12 consecutive weeks of inflows, totaling nearly $1 billion. These inflows represent 19.5% of Ethereum’s total assets under management (AuM), compared to just 9.8% for Bitcoin over the same period.
Furthermore, corporate adoption of Ethereum as a treasury asset is growing. Data indicates that corporations, including recent accumulators like SharpLink, BitMine, and Bit Digital, now hold over $5 billion worth of ETH on their balance sheets.
Despite these recent gains against Bitcoin, Ethereum’s year-to-date return in U.S. dollar terms remains slightly negative. This relative underperformance compared to Bitcoin and other top cryptocurrencies suggests that ETH may have significant room for growth, especially as its fundamentals continue to strengthen through rising institutional investment and corporate treasury adoption.
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