• Ethereum outpaces Bitcoin, signaling the start of a possible altcoin season with a 72% price jump since April.
• For the first time since June 2024, Ethereum’s trading volume has exceeded Bitcoin’s, emphasizing its rising dominance.
• Reduced selling pressure and growing investor interest suggest Ethereum will continue its upward price momentum.

Ethereum (ETH) has recently outpaced Bitcoin (BTC), which leads to speculation around the coming of a new altcoin season. CryptoQuant revealed that Ethereum’s performance has shown a tremendous recovery since April, increasing by 72%. This implies a high record of the underpriced state. The ratio between ETH and Bitcoin has already increased to 0.031 (the highest since January 24).

This performance is in line with findings provided by CryptoQuant on May 16, stating that ETH is undervalued since the sellers are switching to Bitcoin. The report has also been indicating an increased demand for ETH as well as reduced selling pressure. This has been adding to the latest spike. The high price rally on ETH also supports the fact that ETH is likely to dominate the market in the next few months.

Also Read: Ethereum Pulls Back from $3,851 to $3,658 – What’s Next for ETH?

Ethereum Surpasses Bitcoin in Trading Volume

Ethereum spot trading volume has overtaken Bitcoin spot trading volume first time since June 2024. The previous week had ETH trading with a spot volume of 25.7 billion, with Bitcoin trading with a spot volume of 24.4 billion. 

This is the first time in more than a year that weekly trading volume on ETH surpassed that of Bitcoin. The ETHBTC ratio of trade has also shifted past 1, which indicates that ETH has become the most active coin in trading.

Besides the emergence of Ethereum, the volume of altcoin trading has reached its biggest since March. The volume of altcoin spot trading as a whole in July 17 propped up to $67 billion. This surge is an indicator that the interest in altcoins has started growing again, with ETH probably being the first one.

The exchange data of the ETF of the United States indicates that the investors are paying more attention to ETH than Bitcoin. The ETH/BTC ETF Holding Ratio has increased to 0.12 as compared to 0.05. 

This implies that a larger amount of the capital is being directed toward ETH than BTC. This further shows that the pace at which investors are showing interest towards ETH is increasing at a higher rate. The trend demonstrates the attractiveness of Ethereum as an excellent asset to traders and investors.

ETH’s Low Sell Pressure Fuels Growth

The decreased selling pressure faced by ETH is also one of the reasons why it has an increasing demand in comparison with Bitcoin. ETH/BTC Exchange Inflow Ratio reveals that much less of the ETH tokens are sent to the exchanges as compared to Bitcoin. Such reduced selling pressure might lead to even more gains in the prices of ETH since this might aid it in its superior performance compared to Bitcoin.

The current improvement that Ethereum has demonstrated should be maintained, since there are not so many hurdles to its price increase, like in the case of Bitcoin. As the number of investments is growing, sell pressure shrinks, and trading volumes are becoming more robust, ETH can generate even more growth.

With Ethereum still reigning supreme in the altcoin sector, investors and traders are now shifting the focus towards the possibility of realizing price growth in the long term in case of ETH. The positive changes that are currently happening to ETH might create a new era in which altcoins form the center of the market. The direction that there are considerable trading amounts and perfection attitude exhibited by investors indicates that Ethereum has potential in the future.

The current performance of ETH may be an indication that long-awaited altcoin season is finally kicking off. Investors are waiting to learn how ETH would run ahead of Bitcoin and blister through its current price surge.

Also Read: Ethereum (ETH) Near Key Breakout Zone: Is $10K on the Horizon?