Ethher (Eth), the native cryptocurrency of Ethereum Network, is over $2,000.
As explained by Cryptonoticia, AltSeason or Altcoins season (digital assets not Bitcoin) This is the period during which these assets significantly increase their prices.
This period usually starts at a strong capital entrance to BTC, driving prices to new maximums. After the currency created by Nakamoto At takes off, investors seek greater profits and transfer their holdings to ether, the main altcoin of market capitalization.
As ETH acquires impulses, enthusiasm increases in the market and activates wider speculative demand, which strengthens the upward phase of the remaining altcoin.
So, are there any specific indications that ETH may be starting the bullish cycle that is the beginning of AltSeason?
According to Cryptoquant Data, an analytics company On-chainEthereum’s native currency measured in BTC may have touched the background. Matched with the start of a new favourable season for altcoins.
The graph shows two important rows for analyzing the relationship between ETH and BTC. The black line represents the actual price of ETH/BTC torque, which fluctuates constantly over time, while the grey shows a simple mobile average of 365 days (SMA).
last week, ETH prices measured in BTC increased 38% over the last 7 days. This occurs after reaching the lowest level since January 2020 (green arrow).
An expert at the company emphasized that “ETH has been performing poorly recently, and its possible funding for BTC is reflected in greater demand for ETH in relation to lower BTC and sales pressures.”
Cryptoquant also showed the relative proportion of volume spot (cash): Photo taken last week regarding eth’s BTC. It reaches its highest level of 0.89 since August 2024. “This shows that traders, investors and holders increased exposure to ETH compared to BTC. This also occurred between 2019 and 2021, when ETH surpassed BTC four times,” they said.
Meanwhile, the report notes that investors will begin to resign from purchasing ETH via bags cited in the stock market (ETF). In this regard, the analysts argue: “The increase in ETH allocations likely reflect the expectations of relative performance driven by factors such as recent improvements in scalability and a more favorable macroeconomic environment.”
As reported by Cryptootics, this ETH rise was given In the middle of the general increase experienced by financial markets. Some of the news that created stability in the macroeconomic context is a commercial agreement between the US and China, plus a speech by Jerome Powell (Fed) who implied that there was no intention to strengthen interest rate policies.
This adds rumours that at the time of this publication, JP Morgan could circulate Bitcoin (BTC) purchasing services (but manage) to customers. This reinvigorates the enthusiasm of not only BTC but also cryptocurrency.
Additionally, as crypto analysts show, you should not omit the latest update on the Ethereum Network, Pein activation. This initiative is committed to optimizing network efficiency, scalability, and safety, including improving account management and optimizing Layer 2 solutions (L2).
Investor and cryptocurrency market analyst Ted Pillows emphasized that PIN is positive for the market as ETH is “deflation again”. In other words, ETH burning is driven by increased network activity, which encourages the assessment of native currency in the context of greater emissions and increased demand.
In this context, Kaiko’s research showed that Pein’s activation “caused a strong rebound, with ETH rising 25% between May 7th and 9th, marking a clear break with the usual “sold in news” trend after strong updates have been recorded so far, and usually followed a major update on Ethereum.
It is important to mention this as Kaiko Research had warned before the activation of the PIN. “None of these things really promoted prices. In fact, most of them were events that promoted news sales, with prices falling by 12% and 18% over the two weeks between Dencun and Merge.”
The following graph shows the performance of ETH prices after activation of Pein (blue line), Dencun (black line), Shapella (Celestial Line), and Merge (Orange Line).
Attention! Ethereum gave false indications in the past
As seen in the following TrainingView graph, ETH prices measured in BTC in the past have recovered after touching relative floors, but their rebounds have not been able to maintain themselves over time.
Therefore, although current indicators suggest a possible trend change, different analysts have different opinions about ETH. For example, two Primes state that investment companies ETH is currently acting like Memecoin As a predictable asset.
Through the statement, the company claims it will focus solely on purchasing BTC. This is because it shows greater resilience after recoil from the historic maximum, and unlike ETH, it attracts purchases in falls.
In other words, many investors believe that the price decline in BTC is an opportunity to buy at a lower price. This is for Bitcoin There are limited broadcasts to 21 million unitsknown as half, is reduced every four years. It is a factor that affects its prices in the medium term.
Similarly, it is necessary to mention that many investors consider BTC to be “digital gold” because of the properties they share with precious metals. It is a decentralized asset and is resistant to bank and government censorship. Moreover, it differs from Fíat Money as it has not been devalued by central bank broadcasting or financial policies.
ETH does not show the same fortress in an age of economic uncertainty, and in the short term it weakens its appeal and depends on the preferred macroeconomic context.
The two Primes also mention that the network created by Vitalik Buterin has fierce competition from Solana Network, Higher Speed and a better user experience.
As for ETF performance, we had a good week after the sin update, but it’s important to observe the full panorama. Since its launch, its yields have been much lower than that of Bitcoin ETFs, with tickets accumulating at over $410 million since January 2024. In comparison, etheric ones rarely reach $2,510 million.
Another issue to highlight is that despite the launch of the ETF, the price of ETH measured by Fíat Money is far from the historic (ATH) $4,981 in November 2021. At the time of publication, the price was over $2,500.
With regard to ETFs, Token Dispatch analysts point out that they face three major challenges: First, the high costs of some products, such as Grayscale Ethereum Trust (ETHE), charge a yearly fee of 2.5%, which is much higher than alternatives such as BlackRock’s ETF.
Second, Ethereum’s story is more difficult to communicate. Unlike Bitcoin, which was able to clearly position itself as “digital gold,” Ethereum serves multiple functions. From being the basis of intelligent contracts and distributed finances (defi) to generating performance through staking. This complexity complicates the recruitment, especially among financial advisors who are looking for a brief explanation.
Finally, current ETFs do not include staking options that limit their appeal. This feature allows users to get rewards to block ETH and is not available with funds, thus losing the important benefits of the asset.
In summary, while recent price rebounds have generated enthusiasm, ETH continues to face important barriers to takeoff at levels never seen before.
