Ethereum’s 20% Surge: Is ETH’s Undervalued Edge About to Steal Bitcoin’s Crown?
Ethereum rockets 20% to $2,188, hitting its most undervalued level vs. Bitcoin since 2019. Can ETH lead the next crypto rally? Find out!
Ethereum (ETH), the world’s second-largest cryptocurrency, has surged 20% to $2,188.73, breaking past the $1,900 resistance level, as reported on May 8, 2025. This rally coincides with ETH reaching its most undervalued level relative to Bitcoin (BTC) since 2019, according to CryptoQuant’s ETH/BTC MVRV ratio. With Bitcoin holding steady near $100,000, ETH’s breakout is sparking buzz about a potential altcoin season.
What’s Happening?
The ETH/BTC ratio, which measures Ethereum’s value against Bitcoin, has dropped to multi-year lows, signaling ETH is “extremely undervalued.” Historically, such levels have preceded ETH rallies, like the 160% surge after October 2023. Posts on X highlight strong ETF inflows, with 3.3 million ETH in funds, and institutional buying as key drivers. The recent Pectra upgrade, boosting Ethereum’s scalability, and a 1 million-fold stablecoin market cap growth since 2018 further fuel optimism.
The ETH/BTC ratio, which measures Ethereum’s value against Bitcoin, has dropped to multi-year lows, signaling ETH is “extremely undervalued.” Historically, such levels have preceded ETH rallies, like the 160% surge after October 2023. Posts on X highlight strong ETF inflows, with 3.3 million ETH in funds, and institutional buying as key drivers. The recent Pectra upgrade, boosting Ethereum’s scalability, and a 1 million-fold stablecoin market cap growth since 2018 further fuel optimism.
Why It Matters
Ethereum powers DeFi, NFTs, and smart contracts, with $1.74 billion in TVL and 13.6 million active Layer-2 addresses. Its undervaluation suggests room for growth, especially if Bitcoin’s rally lifts altcoins. However, challenges persist: network activity is flat, ETH ETF inflows lag Bitcoin’s $36 billion, and the Dencun upgrade’s fee reduction has slashed token burns, increasing supply. A failure to hold $2,000 could see ETH drop to $1,700.
Ethereum powers DeFi, NFTs, and smart contracts, with $1.74 billion in TVL and 13.6 million active Layer-2 addresses. Its undervaluation suggests room for growth, especially if Bitcoin’s rally lifts altcoins. However, challenges persist: network activity is flat, ETH ETF inflows lag Bitcoin’s $36 billion, and the Dencun upgrade’s fee reduction has slashed token burns, increasing supply. A failure to hold $2,000 could see ETH drop to $1,700.
What’s Next?
Analysts predict ETH could hit $3,000-$3,500 if it clears $2,200, with some eyeing $5,925 by year-end if ETF and upgrade momentum grows. Yet, Bitcoin’s 64% market dominance and potential tariff-driven volatility could cap gains. Watch for whale accumulation and ETF flows to gauge ETH’s trajectory.
Analysts predict ETH could hit $3,000-$3,500 if it clears $2,200, with some eyeing $5,925 by year-end if ETF and upgrade momentum grows. Yet, Bitcoin’s 64% market dominance and potential tariff-driven volatility could cap gains. Watch for whale accumulation and ETF flows to gauge ETH’s trajectory.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
