Ether is starting to outperform bitcoin – and further gains could be ahead for the crypto, charts show

CNBC

4 days ago

Ether continues to demonstrate notable strength, both on an absolute basis and relative to bitcoin , which suggests that its recent up-move could kickstart further gains. First, on this daily chart, it's clear that ETH finally has broken out of a bullish inverse head-and-shoulders pattern, a technical formation that has been under construction for most of 2025. By continuing to trade above the $2,870-breakout zone, the measured-move upside objective would be all the way up at $4,375. Momentum is also supportive of the move. ETH's 14-day Relative Strength Index (RSI) now has spiked from the low 30's to the mid-70s in just four weeks. That's quite a move for the indicator. For context, the RSI surged to nearly 90 in mid-May before cooling off. This suggests that while the current rally is powerful, it will need a breather again at some point soon. Nevertheless, as long as ether continues to hold above the neckline of its inverse head-and-shoulders pattern, the broader bullish case remains viable. Further, eventually achieving the $4,375-target also would put ether above its December 2023 highs and back within striking distance of its all-time highs from the 2021 cycle. In doing so, ETH would also be completing what could be a much, much larger, multi-year bullish base, which is best viewed on this monthly log chart. Thus, this longer-term pattern implies that the breakout discussed above may, in fact, be more than just a short-term trading event. Needless to say, a lot hinges on ether's ability to maintain its recent strength. Not only has ether been strong on its own, but it has also begun to outperform bitcoin. Since bottoming earlier this year, ETH has done materially better than BTC: From the April lows, bitcoin is up 60%, while ether has shot higher by over 130%. That relative strength is important, particularly for traders and investors seeking rotation opportunities between the two largest cryptocurrencies. The key question is whether this bounce in the ETH/BTC ratio now marks the beginning of a new cycle of ether outperformance. If it does, ether could not only reclaim its leadership role in the crypto space but also reignite broader interest across the alt-coin landscape. All eyes remain on ETH to see if it can continue to build on this momentum — and if so, the next leg higher may just be getting started. The next step: hold this breakout on the ensuing pullback, whenever it starts. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.