According to Glassnode analysts, Ethereum's price is lagging due to "weaker capital rotation" compared to Bitcoin's performance in recent years. Data from Cointelegraph Markets Pro and TradingView indicates that Ethereum has been underperforming Bitcoin, resulting in a weaker ETH/BTC ratio. This ratio hit a low of $0.04622 on May 1, the lowest since April 2021.

Glassnode attributes Ethereum's underperformance to a lag in speculative interest from the Short-Term Holder cohort, which consists of investors who acquired their coins within the last 155 days. The data shows that Bitcoin experienced a significant increase in speculative activity leading up to all-time highs in March, while Ethereum has not breached its previous all-time high.

Furthermore, Glassnode's on-chain data reveals that Bitcoin's Short-Term Holder Realized Cap is nearly at previous cycle levels, while Ethereum's Realized Cap is less than half of its previous cycle levels, suggesting a lackluster inflow of new capital.

Despite this, Glassnode indicates that both Ethereum and Bitcoin are in the early stages of a macro uptrend. While both assets experienced corrections after the halving, the market appears resilient with shallow corrections so far. The Net Unrealized Profit/Loss metric suggests that the market is still in the early stages of this uptrend.

Glassnode also highlights that capital inflows into Ethereum tend to lag behind those into Bitcoin. Although post-halving market actions resemble past cycles, Ethereum has demonstrated underperformance relative to Bitcoin. Capital flows and rotation between Bitcoin and Ethereum reveal that Bitcoin has received more inflows, possibly driven by US spot ETFs.

This analysis does not offer investment advice. Readers are encouraged to conduct their own research before making investment decisions.