Ethereum Outperforms Bitcoin Amid Market Shift, Up 71% Since April Low

Crypto market interest is gradually transitioning from Bitcoin to Ether, a shift that many investors may overlook due to lingering fears from past market downturns, according to a crypto analyst. Michaël van de Poppe, founder of MN Trading Capital, highlighted this trend in a recent market update. He referenced documents from Willy Woo, a prominent Bitcoin onchain analyst, who suggested that the crypto market is entering an "Ethereum" phase.

Van de Poppe noted that while the market is not entirely focused on Bitcoin, the shift towards Ethereum is subtle and often unnoticed. He attributed this to investors still being in a "markets are bad" mindset, a residual effect of the recent bear market. Despite this, he pointed out that Ethereum's returns are currently outperforming those of Bitcoin.

Van de Poppe explained that the shift towards Ethereum is driven by macroeconomic factors, such as a weakening dollar and an improving business cycle. He also mentioned that while Ether has seen a 71% increase since its April low, it is still down 48% from its November 2021 all-time high.

The ETH/BTC ratio, which measures the performance of Ether relative to Bitcoin, has shown mixed signals. It is up 0.33% over the past 30 days but down 32.32% over the past six months. Crypto analyst "Crypto Fella" emphasized the importance of this ratio, stating that a significant reversal would require more strength in Ether's performance.

Another analyst, Ted, compared the current Ethereum cycle to Bitcoin's 2017-2021 cycle, predicting that a real parabolic move for Ether would begin once it breaks the $4,000 mark.

Despite the mixed signals, the recent performance of spot Ether ETFs has been more promising. US-based spot Ether ETFs recorded their longest-ever inflow streak at 19 consecutive days, with $1.37 billion in inflows. This represents approximately 35% of total inflows since their launch in July 2024.

However, other indicators suggest that the market remains Bitcoin-dominated. The Altcoin Season Index, which measures whether altcoins are outperforming Bitcoin based on 90-day performance, currently signals a "Bitcoin Season" with a score of 23 out of 100. There were recent signs of a potential flip on May 10, when the index hit 43 following Ether’s 42% rebound.

Van de Poppe emphasized that for an altcoin season to return, Ether needs to deliver stronger and more sustained performance. He noted that the markets are becoming increasingly complex, and investors need to adapt to these changes.