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The value of Ethereum (ETH) has continued to impress over the previous week, momentarily reaching the $2,700 mark (for the first occasion in nearly three months) on Tuesday, May 13. While the altcoin has somewhat decelerated at the onset of this weekend, the market optimism remains inclined towards the ongoing recovery of the ETH value.
Specifically, Ethereum’s price is anticipated to advance further in its recovery by surpassing Bitcoin (the largest cryptocurrency by market value) in the coming months. This overwhelming potential of the “king of altcoins” surpassing BTC raises the question: Is an altseason imminent?
ETH Experiences Heightened Investor Interest And Diminished Selling Pressure
In its most recent weekly report, the market analytics platform CryptoQuant disclosed that the Ethereum price relative to Bitcoin may have reached its low point, indicating that the former could be gearing up to outperform BTC. According to CryptoQuant, this development could signify the onset of the altseason — a timeframe where funds transition from Bitcoin into other cryptocurrency assets.
Data from CryptoQuant reveals that the ETH/BTC price ratio has surged by 38% over the last week. This positive trend followed a decline to its lowest point since January 2020, marking a historical relative low for ETH and a catalyst for the altcoin season.
Moreover, CryptoQuant emphasized that Ethereum recently entered an extreme undervaluation territory, based on the ETH/BTC MVRV (market value to realized value) measure, for the first time since 2019. When this occurred in 2017, 2018, and 2019, ETH subsequently outperformed BTC by a large margin.
Source: CryptoQuant
CryptoQuant also pointed out that Ethereum’s potential bottom against Bitcoin is further highlighted by the increased demand and reduced selling pressure for ETH compared to BTC. For example, the relative ratio of ETH’s spot trading volume to Bitcoin skyrocketed to 0.89 — its highest level since August 2024 — in the past week, indicating a greater tendency of investors to purchase ETH over Bitcoin.
Meanwhile, investors are also leaning towards Ethereum through exchange-traded funds (ETFs) acquisitions, with the ETF holdings ratio surging dramatically since late April. This spike suggests an uptick in ETH purchases via ETFs compared to Bitcoin — driven by growth catalysts such as recent network enhancements and an improving macro environment.
Ultimately, exchange inflow data reveals the diminishing sell pressure on Ethereum relative to Bitcoin. CryptoQuant mentioned that, as of May 2025, the ETH exchange inflow ratio has fallen to its lowest mark since 2020, indicating that the altcoin is experiencing significantly less selling pressure than BTC.
Ethereum Price Overview
As of this moment, the price of ETH stands just below $2,500, representing an over 3% decline in the last 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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