According to data from Odaily, the ETH/BTC exchange rate has increased by up to 30% in just one month, indicating a clear increase in demand for Ethereum. Technical analysts believe this exchange rate pair is breaking out of the 'cup and handle' pattern – a pattern often associated with long-term upward trends – and this could signal the start of a new 'altcoin season.'
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Institutional cash flow is shifting towards Ethereum
In line with the developments on the chart, the market is witnessing a clear shift in capital flows:
• The Ethereum spot ETF in the U.S. has recorded continuous inflows for 12 days, indicating increasing interest from institutional investors.
• Meanwhile, the Bitcoin spot ETF has recorded three consecutive days of outflows (from May 29 to June 2), with a total value of up to $1.23 billion – a significant amount.
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Message from the market: Altcoins are awakening
The divergence in cash flow between Bitcoin and Ethereum, along with the strong rise in the ETH/BTC chart, suggests that the market may be entering a phase of pivoting from BTC to altcoins. If this trend continues, Ethereum could become the focal point leading the next wave of increases – and that often brings about a simultaneous recovery in many other altcoins.
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In summary: The ETH/BTC exchange rate has increased significantly, capital is flowing into Ethereum ETFs and out of Bitcoin ETFs – all signs indicate that Ethereum is regaining its appeal and could be a catalyst for the beginning of a new growth cycle in the altcoin market.
