The Ethereum (ETH) price dynamics have been capturing significant attention in the crypto market lately. On May 13, for instance, Ethereum briefly touched the impressive $2,700 mark for the first time in nearly three months. Despite experiencing some fluctuations as the weekend approached, there remains a palpable sense of market confidence surrounding Ethereum’s potential recovery.
Analysts are increasingly optimistic that Ethereum may be on the verge of outperforming Bitcoin, the largest cryptocurrency by market capitalization. This raises an intriguing question for crypto enthusiasts: Are we on the brink of an altseason? An altseason is often characterized by capital flowing from Bitcoin into other cryptocurrencies, particularly altcoins like Ethereum.
ETH Sees Increased Investor Demand and Reduced Selling Pressure
According to a recent report from market analytics platform CryptoQuant, the current price of Ethereum in relation to Bitcoin might have hit a new low. This suggests potential for Ethereum to begin outperforming BTC as the market shifts dynamics. Observations from CryptoQuant indicate that the escalating demand for Ethereum, coupled with dwindling selling pressure, could signal the onset of a significant altseason.
Data from CryptoQuant highlights a remarkable 38% increase in the ETH/BTC price ratio over the past week. This surge occurred after the ratio had dipped to its lowest level since January 2020, which many analysts see as a potential springboard for Ethereum’s future gains in the broader market context.
Furthermore, Ethereum recently entered a state of extreme undervaluation based on the MVRV (market value to realized value) metric, marking a strategic moment not seen since 2019. Historical trends reveal that similar conditions in 2017, 2018, and 2019 resulted in significant outperformance of ETH over BTC, suggesting a lucrative opportunity on the horizon.
The reduction in selling pressure relative to Bitcoin is particularly noteworthy. The relative ratio of ETH’s spot trading volume to Bitcoin surged to 0.89—the highest level since August 2024. This shift indicates a growing inclination among investors to acquire Ethereum rather than Bitcoin, which may reflect the increasing confidence in Ethereum’s future.
The enthusiasm extends beyond spot trading; investors are also showing a preference for Ethereum through exchange-traded funds (ETFs). Since late April, the ETF holdings ratio for ETH has significantly increased, demonstrating a heightened interest in Ethereum relative to Bitcoin. Factors contributing to this surge include recent network upgrades and an improving macroeconomic environment.
Notably, exchange inflow data reinforces the narrative of dwindling selling pressure on Ethereum compared to Bitcoin. As of May 2025, Ethereum’s exchange inflow ratio has reached its lowest point since 2020, further supporting the thesis that ETH faces diminished sell pressure.
Ethereum Price At A Glance
As of the latest updates, the price of Ethereum is hovering just beneath $2,500, reflecting a slight decline of over 3% in the past 24 hours. This price action comes amid a broader context of increased investor activity and anticipation surrounding Ethereum’s potential resurgence.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
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