Ethereum ($ETH) has reached its strongest level against Bitcoin in about three months, adding to discussion that the asset may be entering an uptrend phase as broader crypto market indicators remain positive.

The total cryptocurrency market capitalization has taken in roughly $57.39 billion in inflows since the low recorded on July 24. That additional liquidity has supported Ethereum’s recent outperformance, while structural chart patterns and market correlations have drawn attention to fractal setups that have previously appeared before rallies.

ETH/BTC posts highest weekly close in 12 weeks

The ETH/BTC pair recorded its highest weekly close in 12 weeks, or roughly three months, settling at 0.0289. The ratio measures Ethereum’s price relative to Bitcoin, so a rising ETH/BTC chart indicates that ETH is outperforming BTC even if both assets are moving in the same direction against the dollar. The ratio has continued to rise and is now trading well above the descending resistance line shown on the chart.

In previous cycles, this type of breakout has been viewed as a sign that capital is rotating into Ethereum before moving into the wider altcoin market, a sequence that has often allowed altcoins to outperform.

Analyst Daan Crypto said the trend appears bullish, while noting that several conditions still need to be met before the momentum can support a larger Ethereum move. His setup requires ETH/BTC to reclaim both the 200-period moving average (MA) and the 200-period exponential moving average (EMA), while staying above 0.03. Traders commonly use these moving averages to judge whether price is trading above or below a longer-term trend, with the EMA giving more weight to recent price action. The pair is currently trading above that level.

Analysts focus on Ethereum’s short-term structure

Analysts cited in the report largely remain bullish on Ethereum’s outlook and see a possibility that the current move could extend. Michael Van de Poppe is focused on the short-term chart, describing the latest surge as a breakout from support near $1,825.

Within his target zone, Van de Poppe expects Ethereum to retest its earlier local high near $2,464. He said:

“This build-up of $ETH is about to break towards $2,000+ for the first time in more than two months.”

On a wider time frame, Van de Poppe’s view is more bullish. He said Ethereum’s price is moving within a structure similar to the one that preceded the rally after the COVID-19 crash, describing it as a bullish triangle.

According to his analysis, if Ethereum holds the triangle’s support, the asset could rebound and continue higher. His chart work points to a longer-term target range between $12,000 and $17,000 if that support remains intact.

Puell Multiple moves out of undervaluation zone

The Puell Multiple, a cyclical indicator often used to assess whether the crypto market is overvalued or undervalued, has also provided a signal watched by analysts. The metric is typically monitored as part of broader cycle analysis rather than as a standalone timing tool, which makes its direction most relevant when viewed alongside price structure and market liquidity.

The metric has recently moved out of undervaluation territory, indicating that capital is gradually returning to the market. Maintaining that recovery over time would be important for the market to stabilize, especially in the near term.

Ethereum’s relative strength against Bitcoin has now reached a level not seen in three months. Analysts cited in the report are watching a short-term target near $2,464, while longer-term projections from Van de Poppe extend to $12,000 to $17,000 if key support levels hold.