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The price of Ethereum (ETH) continued to impress over the past week, briefly touching the $2,700 level (for the first time in nearly three months) on Tuesday, May 13. While the altcoin has somewhat slowed down at the start of this weekend, the market confidence continues to tilt toward the continued recovery of the ETH price.
Specifically, the price of Ethereum is being tipped to take a step further in its recovery by outperforming Bitcoin (the world’s largest cryptocurrency by market capitalization) over the next few months. This overwhelming potential of the “king of altcoins” overtaking BTC begs the question: Is the altseason on the horizon?
In its latest weekly report, market analytics platform CryptoQuant revealed that the price of Ethereum relative to Bitcoin may have hit its bottom, suggesting that the former might be preparing to outperform BTC. According to CryptoQuant, this development could mark the beginning of the altseason — a period where capital rotates from Bitcoin into other crypto assets.
Data provided by CryptoQuant shows that the ETH/BTC price ratio has experienced a 38% increase in the past week. This positive rally came after the ratio fell to its lowest since January 2020, marking a historical relative bottom for ETH and springboard for the altcoin season.
Furthermore, CryptoQuant highlighted that Ethereum recently entered an extreme undervaluation region, based on the ETH/BTC MVRV (market value to realized value) metric, for the first time since 2019. When this occurred in 2017, 2018, and 2019, ETH went on to outperform BTC by a significant margin.
CryptoQuant also mentioned that Ethereum’s possible bottom again Bitcoin is further accentuated by the higher demand and reduced selling pressure for ETH compared to BTC. For instance, the relative ratio of ETH’s spot trading volume to Bitcoin jumped to 0.89 — its highest value since August 2024 — in the past week, showing the larger propensity of investors to buy ETH instead of Bitcoin.
Meanwhile, investors are also favoring Ethereum through exchange-traded funds (ETFs) purchases, with the ETF holdings ratio increasing sharply since late April. This growth spike suggests an increased purchase of ETH through ETFs relative to Bitcoin — influenced by growth catalysts such as recent network upgrades and improving macro environment.
Finally, exchange inflow data demonstrates the dwindling sell pressure on Ethereum compared to Bitcoin. CryptoQuant noted that, as of May 2025, the ETH exchange inflow ratio has dropped to its lowest level since 2020, suggesting the altcoin is facing significantly lower selling pressure than BTC.
As of this writing, the price of ETH sits just beneath $2,500, reflecting an over 3% decline in the past 24 hours.
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