After a protracted period of underperformance compared to Bitcoin, Ethereum may be set for a long-awaited turnaround, according to cryptocurrency market analysts.
Over the past five months, Ethereum (ETH) has struggled significantly, lacking momentum against both Bitcoin (BTC) and other altcoins. Despite this extended sluggishness, observers note that May, historically Ethereum’s strongest month, might provide the spark for recovery. According to data tracked since 2016, Ethereum has seen an average return of approximately 28% in May alone, prompting analysts to closely monitor this period for early signs of revival.
Market observers at blockchain analytics firm CryptoQuant pointed out that Ethereum is currently at its largest undervaluation relative to Bitcoin since 2019, a situation historically correlated with subsequent periods of ETH price outperformance. However, the analysis also cautioned that continued supply pressures, subdued demand, and stagnant on-chain activity could undermine Ethereum’s potential resurgence.
Opinions remain divided within the cryptocurrency market. Some analysts have argued that if a substantial price uptick were imminent, industry insiders would already be positioning themselves publicly, reflecting clearly in market movements. Nonetheless, the possibility of more subtle, off-market accumulation via over-the-counter (OTC) transactions cannot yet be fully discounted.
Meanwhile, Ethereum’s long-term momentum continues to hinge on its ongoing network improvements. The Ethereum Foundation’s recent upgrade initiative, known as Pectra, aims to enhance user experience by bringing decentralized applications closer in performance and usability to traditional apps. Artemiy Parshakov, vice president of institutional partnerships at staking infrastructure provider P2P.org, has highlighted that the account abstraction feature included in the Pectra upgrade opens entirely new avenues previously unavailable to decentralized applications.
Tracy Jin, the Chief Operating Officer at cryptocurrency exchange MEXC, sees Ethereum’s Pectra upgrade as potentially transformative for broader market sentiment. With Bitcoin’s dominance currently near an annual high of 63.9%, and most altcoins struggling to secure sustained attention, Jin believes Pectra presents a meaningful chance to shift market momentum decisively toward Ethereum and other alternative cryptocurrencies.
Though short-term challenges remain apparent, Ethereum’s recent strategic developments and potentially favorable seasonal trends may provide a significant platform for a market rebound.
