Ethereum (ETH) has recently displayed superior performance compared to Bitcoin (BTC) regarding price movement and ETF inflows, echoing a potential shift in market focus. In just the last couple of weeks, Ethereum ETFs saw net inflows of $360 million, while Bitcoin managed only $120 million, hinting at changing investor preferences.

Key Points:

• Ethereum ETFs have witnessed inflows three times greater than those of Bitcoin, showcasing their growing momentum.
• ETH’s price movements indicate it has potentially found a bottom, surpassing Bitcoin’s growth.

Retail Investors Accumulating Ether, Potential for a Pullback

Insights from CryptoQuant reveal a notable shift in retail trading behavior towards Ethereum. When ETH dropped below $2,700 recently, retail investors quickly capitalized, leading to a robust recovery in the price. This behavior seems reminiscent of previous accumulation phases where early interest preceded more significant price corrections.

Ether retail purchasing data Data indicative of Ether’s retail purchasing patterns. Source: CryptoQuant

Such patterns have historically led to a final test of liquidity, often flushing out late buyers before stronger rallies form. Moreover, with Ethereum’s current net unrealized profit/loss (NUPL) at about 0.22, this indicates a balanced market. Investors seem to be in a moderate profit zone without showing signs of exuberance.

ETH Shows Technical Advantage Over Bitcoin

From a technical perspective, Ethereum is exhibiting a more favorable setup compared to Bitcoin. Recently, ETH broke through a significant structural barrier, reaching a 20-day high above $3,200, effectively shifting its trend.

However, Bitcoin needs a convincing daily close above $96,000 for similar confirmation of its breakout potential. Therefore, Ethereum currently possesses a structural edge in the market.

BTC vs ETH Comparison of one-day charts for BTC and ETH. Source: Cointelegraph/TradingView

The ETH/BTC pair has also solidified this advantage by surpassing a 30-day consolidation zone, and a successful retest of the 200-day moving average supports this bullish trend. Historical data suggests that reclaiming this moving average often precedes significant performances by Ethereum over Bitcoin.

ETH/BTC analysis ETH/BTC daily chart analysis. Source: Cointelegraph/TradingView

Should Bitcoin stabilize above $94,000, and secure a close beyond $96,000, it may help alleviate overhead pressure for Ethereum, allowing it to pursue its established uptrend. This could bring ETH to retest the $3,650 high and potentially reach $3,900—a 20% increase from current levels, aligning with external liquidity thresholds.

Note: This article does not constitute investment advice. All trading carries risk, and individuals should conduct thorough research prior to any investment decisions.