Key takeaways:
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Ethereum is up 50% against Bitcoin since April, breaking key resistance levels.
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Corporations now hold over $5 billion in ETH, which is one of the key reasons behind the Ether boom.
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ETH still lags behind in 2025 returns, leaving room for upside.
Ethereum’s Ether (ETH) token is gaining momentum against Bitcoin (BTC), with its ETH/BTC pair surging over 50% since its multimonth lows in April.
Ether could rally another 30% versus Bitcoin
On Wednesday, ETH/BTC climbed to 0.0267 BTC, its highest level in four months, as it confirmed a breakout from a bull flag pattern, typically a continuation setup that signals further upside.
The breakout began on July 10 with a close above the flag’s upper trendline and has gained strength on rising volumes.
ETH/BTC has also broken above its 200-day exponential moving average (200-day EMA; the blue wave in the chart below) for the first time in over a year. The pair is now treating the wave as its newfound support.
Holding above the 200-day EMA increases Ether’s potential to continue its rally toward the pattern’s measured target near 0.035 BTC, up about 30% from current levels, by August or September.
Related: ‘99% chance’ Bitcoin dominance has peaked if Ethereum surge continues
“The breakout at 0.02425 was crucial,” said popular analyst Michaël van de Poppe, noting that the broader altcoin market will “follow Ethereum in the momentum” versus Bitcoin.
Chartist VirtualBacon also anticipates further gains in the ETH/BTC pair, citing Ether’s ongoing lower high formations against Bitcoin for the first time since 2023.
“Momentum is shifting,” he writes.
Why is Ethereum outperforming Bitcoin?
Ethereum’s recent strength comes amid surging ETP inflows into ETH investment products.
“Ethereum posted its 12th consecutive week of inflows, totalling US$990 million, the 4th largest on record,” writes James Butterfill, head of research at CoinShares, in his July 14 report, adding:
“In relative terms, Ethereum’s inflows over the past 12 weeks account for 19.5% of its AuM, compared to 9.8% for Bitcoin.”
Companies now hold over $5 billion in ETH, led by recent accumulation by SharpLink, BitMine, and Bit Digital, according to data resource StrategicETHReserve.XYZ.
That signals a growing institutional shift toward Ethereum treasuries.
Ethereum’s year-to-date returns in US dollar terms remain in the red at around -5.85%.
This underperformance relative to Bitcoin and other top altcoins like XRP (XRP) and BNB (BNB) suggests that Ethereum can quickly catch up, especially as its fundamentals strengthen through rising ETF inflows and treasury adoption.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
