Ether (ETH) started the year strongly but began tapering off in mid-March. However, the altcoin began picking up momentum in mid-May amid anticipation of the approval of spot Ether exchange-traded funds (ETFs) in the United States.
Although ETH has trailed Bitcoin (BTC) since Jan. 1, it has outperformed the flagship cryptocurrency since spot Ether ETFs received official approval from the Securities and Exchange Commission on May 23.
Since May 15, ETH has surged approximately 30% compared to BTC’s 9% gain in their respective U.S. dollar pairs.
Ether, Bitcoin two-week performance. Source: TradingView
There are three main reasons why ETH has been outperforming BTC throughout the past several days, including a growth in network activity and increased excitement surrounding the launch of spot Ether ETFs.
ETH trended higher against BTC in the last 10 days
Ether is up 23% over the last 10 days, outperforming Bitcoin and other top layer-1 tokens. BTC’s price has climbed only 2% over the last 30 days, while other top-cap layer-1 tokens, such as BNB Chain’s BNB (BNB) and Solana’s SOL (SOL), have rallied 3.35% and 1%, respectively, over the same timeframe.
The ETH/BTC ratio began ascending on May 17, reaching a two-week high of $0.05854 on May 23, a 31% increase.
ETH/BTC ratio. Source: TradingView
From a technical point of view, the ETH/BTC weekly chart showed a bullish divergence from the relative strength index, suggesting that a “trend reversal had started,” as observed by trader and founder of MN Trading Michaël van de Poppe. This ratio is considered bullish as long as the ratio remains above 0.051.
Source: Michaël van de Poppe
“ETH is absurdly undervalued,” pseudonymous analyst Plazma declared in a May 31 post on X, adding that the ETH/BTC ratio will hit 0.1 within a few months and “10 ETH will be equal to 1 BTC.”
Increasing on-chain activity underpins Ether’s outperformance
Ethereum’s network activity and scaling solutions contribute to its performance. Data from DappRadar shows a 7.75% increase in transaction volume among top Ethereum decentralized applications (DApps) over the past week, fueled…
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