Ethereum rallied on Monday and pushed toward highs it hasn’t seen since late 2021, reaching $4,780 during the session.
Traders and funds appear to be reallocating capital into ETH, and several on-chain and market indicators are lining up in its favor.
ETH is breaking out vs BTC.
The ETH/BTC price ratio just crossed above its 365-day moving average.
ETF holdings now total roughly $26 billion, and cumulative inflows this cycle are close to $11 billion. That kind of money is meaningful because it reflects tracked institutional and retail demand entering ETFs rather than the untracked corners of crypto markets.
Market data also points to growing interest in ETH in both spot and derivatives markets. Reports show open interest in Ethereum derivatives rising faster than Bitcoin’s, and perpetual futures positioning has picked up.
Historically, rising exchange inflows near key technical resistance can precede short-term pullbacks, and analysts are watching those flows closely as a potential sign of profit-taking.
The ETH/BTC ratio is getting extra attention because it measures relative strength between the two largest crypto assets.
Crossing above long-run moving averages like the 365-day line can attract momentum traders and funds that follow technical signals.
Still, past breakouts have sometimes reversed quickly, so traders are balancing bullish bets with protective measures like trimming positions or using stop orders.
Flow data will be decisive in the coming days. If $1 billion ETF inflow days repeat and open interest keeps rising, momentum could continue. If exchange inflows accelerate and ETF demand cools, price action could stall.
Featured image from Meta, chart from TradingView
