Ethereum surged nearly 20% in the last month, outperforming Bitcoin by a wide margin as it reached its best position against BTC in three months. Despite some lingering doubts about its bottom, several indicators hint at growing momentum for the second-largest cryptocurrency.
Ethereum's Rising Ratio and Staking Activity
The ETH/BTC price ratio recently hit 0.030, marking a notable high point unseen since April. This surge reveals Ethereum’s increasing strength relative to Bitcoin, even as the broader crypto market faces uncertainty. Historically, the ratio had plunged 80% between 2021 and early 2025, but now investors are sensing a possible reversal.
Thomas Lee, chairman of Bitmine, linked this breakout to a strategic rise in the company's Ethereum holdings coupled with an equity buyback. Lee remarked that despite some political risks, including the uncertain fate of the Clarity Act, the climbing ratio signals a healthier outlook for ETH prices going forward.
Meanwhile, Ethereum’s validator exit queue has emptied completely after reaching a peak of over 2.6 million ETH last September. Analyst Merlijn The Trader interprets this as a sign that selling pressure has dried up. On the flip side, around 2.5 million ETH awaits entry into staking with a wait time exceeding 40 days, effectively restricting supply further rather than increasing sell-side volume.
Investor Demand and Market Response
Demand remains solid with spot Ethereum ETFs attracting more capital than Bitcoin-based funds last week. In fact, on July 27 alone, Ethereum products received inflows of $9.23 million while Bitcoin ETFs saw outflows totaling about $11.6 million. This marks Ethereum’s third consecutive week of positive fund inflows, underscoring sustained investor appetite.
These supply dynamics and fund flows create a delicate balance supporting Ethereum’s price resilience. However, on-chain data still suggests that Ethereum hasn't firmly established a confirmed bottom just yet. Observers note that such shifts in staking movement and fund demand often precede significant price developments.
This material provides information only and should not be taken as financial advice.
