Ethereum has emerged as one of the strongest-performing major cryptocurrencies in recent days, rising about 29.3% over the past week and outperforming Bitcoin’s 21.4% gain during the same period. ETH was trading near $2,463 on Aug. 24, while the ETH/BTC ratio climbed to roughly 0.0318, indicating that Ethereum has been gaining strength relative to Bitcoin.
Fundstrat co-founder Tom Lee believes this marks the beginning of a long-anticipated “Ethereum rotation,” where investor capital shifts from Bitcoin toward Ethereum. Lee argues that growing adoption of tokenization, stablecoins, decentralized finance, and AI-related financial applications could strengthen Ethereum’s role as a global settlement network. Based on this thesis, he forecasts that ETH could potentially exceed $10,000 within the next one to two years, although this remains a personal market outlook rather than a guaranteed outcome.
Institutional demand has also shown signs of improvement. U.S. spot Ethereum ETFs attracted approximately $365 million in net inflows during July, surpassing the $205 million recorded by Bitcoin ETFs during the same period. The stronger inflows suggest that some institutional investors have recently favored Ethereum exposure.
Corporate accumulation has added to the bullish narrative. BitMine Immersion Technologies, chaired by Tom Lee, reported holding more than 5.8 million ETH, representing roughly 4.8% of Ethereum’s circulating supply. The company continues to pursue an Ethereum treasury strategy and earns additional returns through staking.
Despite the recent momentum, Ethereum still faces challenges. Competition from networks such as Solana, the growth of Layer-2 ecosystems, and broader market volatility could affect future performance. In addition, a strong weekly rally alone does not confirm a lasting shift in market leadership.
Going forward, investors will closely watch whether Ethereum can maintain its advantage over Bitcoin, hold support above the $2,400 area, and continue attracting ETF inflows. Sustained strength in the ETH/BTC ratio and continued institutional demand would provide stronger evidence that a broader rotation toward Ethereum is underway.
