Ether Holds Firm as Analysts See Continued Outperformance Over Bitcoin

Ethereum’s native token, Ether (ETH), remains in a strong uptrend despite a recent 9% pullback from its seven-month peak. Data from Cointelegraph Markets Pro and TradingView shows that ETH has bounced back to reclaim the $3,600 level after a brief dip to $3,500 during early Asian trading hours on Thursday. This rebound has sparked optimism among market analysts and on-chain data providers, who believe Ether’s long-term bullish momentum is intact. Lower Selling Pressure Signals Strength One key factor supporting Ether’s continued strength is the ETH/BTC exchange inflows ratio. According to CryptoQuant’s latest Weekly Crypto Report, this ratio remains low compared to Bitcoin, indicating that ETH is facing relatively less selling pressure. “Lower ETH/BTC exchange inflow ratio indicates lower selling pressure for ETH,” CryptoQuant noted. “This continues to be a bullish signal for ETH relative to Bitcoin, potentially supporting further upside in the ETH/BTC pair.” The ratio had previously hit a five-year low in May, highlighting the reduced amount of ETH being sent to exchanges compared to BTC. Although it has since edged higher, it remains well below the red zone that typically signals increased selling activity. Investors Increasing Exposure to Ether Another supportive metric is the ETH/BTC ETF Holding Ratio, which has surged from 0.02 in May to 0.12 currently. CryptoQuant interprets this as a sign that investors are increasingly allocating more funds to ETH relative to Bitcoin. This shift in investment patterns indicates “increasing demand for ETH at the margin,” potentially reinforcing Ether’s price resilience and long-term outperformance. Spot Ethereum ETFs Attract Strong Inflows Spot Ethereum ETFs also showed robust performance recently. On Wednesday, the funds posted their seventh-best day for inflows since launching, pulling in $332.2 million in a single day. In stark contrast, spot Bitcoin ETFs saw outflows totaling $285.2 million over a three-day period. In total, Ethereum spot ETFs have accumulated nearly $8.7 million in net inflows and now manage over $16.6 billion in assets. This consistent inflow demonstrates rising investor confidence in ETH and its future potential. Key ETH Price Levels to Watch On-chain analytics firm Glassnode has outlined important Ether price levels based on its cost basis model, which includes realized prices and market means. To the downside, strong support sits in the $2,000–$3,000 range, with specific levels at $2,100 (realized price), $2,500 (true market mean), and $3,000 (active realized price). “This price range would serve as an important level of support in the event that the price corrects back toward it,” Glassnode wrote. To the upside, the primary resistance level is at $4,500, which is one standard deviation above Ether’s active realized price. This level has historically marked significant market resistance during periods of euphoria, including the March 2024 peak and the 2020–2021 cycle. “Breakouts above this threshold tend to coincide with heightened market euphoria and unsustainable market structure,” Glassnode added. “As such, $4,500 can be identified as a critical level to watch on the upside, especially if Ethereum’s uptrend continues and speculative froth builds further.” Outlook Despite the recent dip, ETH appears well-positioned for continued growth, especially relative to Bitcoin. Low selling pressure, rising investor exposure, strong ETF inflows, and favorable technical support levels all point to a resilient outlook for Ethereum. If momentum persists, analysts believe ETH may test the $4,500 resistance zone in the coming weeks.

Source: CryptoIntelligence