Ethereum has demonstrated notable strength compared to Bitcoin, reestablishing a crucial trend line, sparking discussions about a probable altseason. The cryptocurrency has surpassed BTC since mid-May, primarily due to the expectation of spot Ether exchange-traded funds (ETFs) in the US. Following the endorsement for the Ethereum Spot ETF, its price surged significantly, with the current ETH to BTC ratio standing at 0.056, indicating a noteworthy increase for Ethereum.

On the contrary, Bitcoin found support around $67,000 but faces potential declines to $65,000. In contrast, Ethereum's stability is evident at $3,700 amid increased volatility. Since mid-May, ETH has surged by approximately 30%, surpassing BTC's modest 9% gain. This performance is exemplified in the ETH/BTC ratio, reaching a two-week high of 0.05854 on May 23, marking a 31% surge.

A thorough analysis by pseudonymous crypto analyst Moustache highlighted the reversal of the ETH/BTC ratio from a multi-year supportive trend line. Historically, when prices rebound from this line, altcoin prices usually trend upwards.

The bullish sentiment following the ETF approval is crucial for the ETH/BTC ratio's evaluation. Technical analysts closely monitor this ratio to compare Ethereum's performance against Bitcoin. Despite Bitcoin's strength in recent years, the monthly ETH/BTC ratio chart indicates an upward trend for Ethereum, attributed to higher lows over time, implying that buyers have been sustaining selling pressure, hence supporting ETH prices.

Renowned crypto analyst Michaël van de Poppe observed a bullish divergence in the ETH/BTC weekly chart, indicating a potential trend reversal. As long as the ratio remains above 0.051, the bullish sentiment persists, setting the stage for potential outperformance by altcoins.

A rise in network activity within Ethereum has been noted, along with an increase in unique smart contracts. The approval of spot Ether ETFs by the US Securities and Exchange Commission (SEC) has magnified the bullish sentiment, presenting a substantial milestone for Ethereum, attracting institutional investors and potentially driving price appreciation.

The expiry of 920,000 Ether options valued at $3.5 billion, in conjunction with a PCR below 0.7, signifies a strong bullish sentiment in the market. The analysis of Ethereum's price reveals significant volatility, with fluctuations from $3,965 to $3,757 over the past week. Despite recent bearish momentum, the price struggles to maintain levels above $3,800, with expectations of a bullish trend amidst spot Ethereum ETF anticipation.

Overall, Ethereum's outlook remains optimistic as investors monitor regulatory developments and market responses.

Disclaimer: The content provided does not constitute investment advice; investing involves speculative risks, and capital is at stake.