In a notable turn of events this week, Ethereum has demonstrated considerable strength against Bitcoin, with the ETH/BTC ratio surpassing its yearly average. This renewed momentum is fueled by a combination of technical breakouts and a significant influx of institutional investment, painting a bullish picture for the second-largest cryptocurrency.
The ETH/BTC Ratio on the Rise
Data from CryptoRank has highlighted a significant technical milestone: the ETH/BTC trading pair has broken above its 365-day moving average for the first time since the Ethereum Merge. This development comes after a strong bounce from the 0.02 support level, indicating a potential shift in market dynamics.
To put this into perspective, for Ethereum to revisit its historical high of 0.08 against Bitcoin, its price would need to climb to approximately $9,600, assuming Bitcoin’s price remains stable around $120,000. This breakout underscores Ethereum’s potential to outperform Bitcoin if the current bullish sentiment in the market continues.
Institutional Confidence in Ethereum Soars
On the institutional front, the appetite for Ethereum is undeniable. In the first two weeks of August alone, US spot Ether exchange-traded funds (ETFs) have attracted over $3 billion in net inflows. This marks the second-best monthly performance on record for these funds, with more than half the month still to go.
According to data compiled by SoSoValue, these ETFs are also on track for their most successful week since their launch. Daily inflows have averaged more than $700 million, even peaking at over $1 billion on Monday. This surge in institutional interest has coincided with strong price action for ETH, which reached a yearly high of nearly $4,766 on Thursday. Despite a brief dip, the asset quickly recovered to trade above $4,600.
An “Imminent” All-Time High?
Market experts are increasingly optimistic about Ethereum’s future, with some suggesting that a new all-time high is “imminent.” This confidence is partly due to a perceived market rotation into ETH, with large-cap altcoins leading the charge and mid- and low-cap altcoins expected to follow suit.
Further supporting this outlook is the “Altseason indicator,” which currently stands at a strong 67, well above the 50 threshold that suggests structural strength in the altcoin market. At present, 9% of the top coins are showing a “Positive Impulse,” with none indicating a “Negative Impulse.” Analysts suggest that if this “Positive Impulse” metric surpasses 20%, it could trigger an even broader breakout across the entire market.
