Ethereum is set to "surpass" Bitcoin in Q3

Q2 is gradually coming to a close and Ethereum (ETH) has witnessed an impressive bounce back phase in every sense. With an increase of nearly 40% this quarter, ETH has far surpassed the 28.81% profit margin of Bitcoin (BTC), marking a strong breakthrough compared to the difficult Q1 when ETH had dropped nearly 50% from the opening level of 3,334 USD.

The downturn has caused most holders to fall into a state of loss. Although ETH performed excellently in Q2, many traders are still stuck in the loss zone, unable to bounce back their capital. So, could Q3 be the breakthrough point where Ethereum truly "rewards" the investors who have patiently held through the tough times?

From Despair to Breakthrough: The Recovery Journey of ETH

Q1 has pushed Ethereum to the brink of "despair" and the early part of Q2 hasn't been much better. However, structurally, the situation has begun to change from here. ETH is gradually regaining market share, inching closer to the 10% mark after hitting a historic low of 6.95% on April 22.

At the same time, the ETH/BTC ratio fell to its lowest level in 5 years – coinciding with the multi-year low of ETH at 1,441 USD in mid-April. That was the moment of a true bottom. But it was also from here that a strong bounce back began.

By early May, the ETH/BTC ratio had increased by more than 25% compared to the recent low, just as ETH broke through the resistance level of 2,000 USD and reached the quarterly peak at 2,878 USD on June 11. However, this rally seems to not be over yet.

ETH/BTC Chart | Source: TradingViewSince mid-May, this ratio has maintained a sideways trend but has continuously created higher lows – a classic sign of accumulation. Buying pressure is quickly being reinforced with shallower pullbacks, and the flow of capital into ETH remains steady.

If this pattern continues to break upwards, ETH could fully extend the breakout from Q2 to Q3, opening up the possibility of a long-term trend reversal in the ETH/BTC structure.

BlackRock Bets on Ethereum

The "smart money" group has no intention of leaving Ethereum. On the contrary, BlackRock has pumped as much as 750 million USD into ETH just in June and has not sold a single coin. Such a level of commitment only appears when the growth potential is highly valued.

With a growth rate of 40% in Q2, Ethereum is attracting significant capital inflows from investors seeking asymmetric profits. According to data from Lookonchain, a whale borrowed up to 10 million USDT to purchase 3,983 ETH at a price of 2,510.64 USD.

This indicates that it is not only institutional capital that is driving ETH upwards. The number of whale wallets holding between 1,000–10,000 ETH has also surged, reaching a two-year high of 4,970 wallets, reflecting that large investors may be returning with significant trading volumes.

Source: GlassnodeAnd when such a massive amount of capital flows in, it is usually not a coincidence. Overall, Ethereum clearly has an advantage both technically and statistically compared to Bitcoin throughout the second quarter. Therefore, this capital shift seems to be a calculated reallocation decision rather than a short-term trade.

Looking further out, all signals are in agreement: whale activity is increasing, institutional capital flows are stable combined with a solid ETH/BTC foundation. Ethereum may continue to maintain its lead from Q2 to Q3 and ultimately deliver deserving results for the long-term holders who have waited so long.

Justin