As Bitcoin (BTC) faces selling pressure at $100,000, Ethereum's Ether (ETH) shows signs of recovery. As the second-largest cryptocurrency in the market, ETH has risen over 4% in the past 24 hours, while BTC has dropped 1.5%, falling below $95,000 in Monday's trading. ETH's performance even outpaced the broader market's CoinDesk 20 index, which rose by 0.5%.
This outperformance occurred after investors began shifting funds toward smaller, riskier cryptocurrencies, especially after Bitcoin's nearly vertical rise has stalled since Donald Trump's election. The ETH/BTC ratio, which measures Ether's strength relative to Bitcoin, fell to 0.0318 on Thursday, the lowest level since March 2021, but has since rebounded by 15%, currently at 0.3660.
Digital asset hedge fund QCP noted in a report on Monday: "The market seems to expect BTC to consolidate before December, with attention shifting to ETH in the short term."
In the options market, ETH's risk reversal is heavily skewed toward front-end call options, while BTC call options appear to be favored only after the end of December 2024. This positioning suggests that traders expect Ether to perform well in the short term, while Bitcoin may not accelerate until next year.
Joshua Lim of Arbelos Markets stated: "We are seeing funds from crypto-native hedge funds and family offices shifting from BTC to ETH."
The U.S.-listed spot ETH ETF saw its first net inflow on Friday, primarily due to a $99 million allocation to BlackRock's ETHA product, following six consecutive days of outflows. According to Farside Investors, ETHA's holders include "some of the biggest names in finance," such as the $80 billion hedge fund Millennium.
Ether may continue to gain more relative to Bitcoin in the near future. The ETH/BTC ratio rebounded after hitting a key support level on Thursday, while last week's candlestick chart suggested a trend reversal. Notable crypto trader Pentoshi stated on social media: "It is likely that the low has been reached, and there will be a reversal at least in the short term."
Currently, Bitcoin is well above its daily moving average, and investors may consolidate for a while as they digest the sharp rise since Donald Trump's election.