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crypto.news 2025-05-08 10:45:21

Ethereum’s price gap with Bitcoin could set stage for comeback for first time since 2019

After years of underperformance, Ethereum’s price gap with Bitcoin could pave the way for a long-awaited rebound, analysts say. Ethereum ( ETH ) has been struggling for the past five months, losing momentum to both Bitcoin ( BTC ) and other altcoins. Despite this, there’s hope that May, historically Ethereum’s strongest month, could bring a shift in momentum. Since 2016, Ethereum has averaged nearly 28% return in May, according to data from Coinglass, and this year, analysts are watching closely for signs of a potential rebound. Ethereum’s monthly returns since 2016 | Source: Coinglass According to a blockchain analytics firm CryptoQuant, Ethereum’s current undervaluation compared to Bitcoin is a key signal as ETH is now “extremely undervalued compared to BTC, the first time since 2019.” “Historically, this led to Ethereum outperforming. However, supply pressure, weak demand, and flat activity could stall a rebound.” CryptoQuant There’s still no consensus in the crypto market on how things will unfold. Some think that if something positive were to happen, insiders would already be acting and the market would likely see the price increase, though over-the-counter deals aren’t ruled out yet completely. ETH is now extremely undervalued compared to BTC, the first time since 2019. Historically, this led to Ethereum outperforming. However, supply pressure, weak demand, and flat activity could stall a rebound. pic.twitter.com/QqU2Xh3vo9 — CryptoQuant.com (@cryptoquant_com) May 8, 2025 You might also like: Red alert: Ethereum price crash to continue as rare pattern forms While Ethereum continues to face short-term pressure, the Ethereum Foundation is doubling down on long-term improvements with the Pectra upgrade, which aims to make decentralized apps feel more like traditional applications. As Artemiy Parshakov, vice president of institutions at staking infrastructure provider P2P.org, previously told crypto.news, account abstraction introduced with the Pectra update opens up possibilities “that were simply impossible before.” Tracy Jin, COO of MEXC, also sees Ethereum’s Pectra upgrade as a chance to shift the broader market mood. With Bitcoin dominance hovering near a yearly high of 63.9% and most altcoins struggling to gain lasting traction beyond hype-driven spikes, Jin said the Pectra upgrade offers a “rare opportunity to flip the script in favour of altcoins.” Read more: Ethereum stalls at $1,850 resistance zone as volume dries up

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