Ethereum Surpasses Important Levels Against Bitcoin, Sparking Rumors About a Rise Cycle

Ethereum surged on Monday, reaching a high not seen since the end of 2021, hitting $4,780 during trading. Traders and funds appear to be reallocating capital into ETH, and several on-chain and market indicators are trending in favor of this cryptocurrency. According to CryptoQuant, the ETH/BTC price ratio has surpassed the 365-day moving average, a technical move that often marks the beginning of a stronger bullish trend for Ethereum compared to Bitcoin. Demand for ETFs Pouring In According to the cash flow report, U.S. spot Ethereum ETFs raised about $1 billion in just one trading day, with BlackRock's ETHA raising $640 million and Fidelity's FETH raising $277 million.

The total amount of ETF holdings currently stands at around 26 billion dollars, with accumulated capital inflows during this cycle reaching nearly 11 billion dollars. This figure is significant as it reflects the investment demand from institutions and individuals into ETFs, rather than from the untracked segments of the cryptocurrency market. Market data also shows a growing interest in ETH in both the spot and derivatives markets. Reports indicate that the open interest (open interest) for Ethereum derivative products is increasing faster than Bitcoin, and the trading volume of perpetual futures contracts is also rising. Regarding spot trading, CryptoQuant's volume ratio brought ETH's trading activity to 1.66 compared to BTC last week — the highest level since June 2017 — and over the past four weeks, ETH's spot trading volume reached approximately 24 billion dollars compared to 14 billion dollars for Bitcoin.

Some on-chain indicators are warning. The amount of ETH flowing into exchanges daily has increased and has now surpassed Bitcoin, indicating that holders may be moving funds back to exchanges to sell at higher prices. Traditionally, the capital flowing into the stock market increases near important technical resistance levels, which could foreshadow a short-term pullback, and analysts are closely monitoring this capital flow as a potential sign of profit-taking. Why the Rate Matters The ETH/BTC ratio is receiving more attention as it measures the relative strength between the two largest cryptocurrencies. Breaking above long-term moving averages such as the 365-day line could attract momentum traders and funds tracking technical signals. However, past breakout events have sometimes reversed quickly, thus traders are balancing bullish bets with protective measures such as cutting positions or using stop orders. Cash flow data will be crucial in the coming days. If the $1 billion ETF capital continues to flow in and the number of open contracts continues to rise, the growth momentum may persist. If the capital inflow to exchanges accelerates and the demand for ETFs cools down, price volatility may stabilize.