Ether (ETH) outperformed Bitcoin (BTC) this week in terms of price action and ETF flows, reinforcing the capital rotation narrative. In the last two weeks spot ETH ETFs recorded net inflows of $360 million compared to BTC $120 millionsignaling a fleeting change in investor preferences.

Key takeaways:

• ETH spot ETFs attracted three times more inflows than BTC, strengthening their relative momentum.

• ETH price action is outperforming Bitcoin on high time frames, suggesting that Ether has bottomed out.

The retailer is accumulating Ether, but there could be another pullback

Data from CryptoQuant excellent that the average spot order size indicator showed a clear change in behavior in the ether markets. When ETH dropped below $2,700 on November 21, retail buyers moved in aggressively, generating a acute demand-driven rebound. This reflected earlier phases of accumulation, especially the March-May period, when early retail activity preceded a deeper correction.

Historically, retail-led rallies at local lows have often led to an eventual liquidity refresh, shaking out delayed buyers before stronger growth emerges. This vigorous suggests that ETH may continue to allow for a controlled pullback to reset positioning and prepare for a more sustained move higher.

Meanwhile, Ether’s Net Unrealized Profit/Loss (NUPL) is currently close to 0.22, which indicates a balanced market, meaning investors are maintaining moderate gains without getting too euphoric.

Importantly, NUPL has not fallen into negative territory, indicating that holders remain structurally mighty, reducing the likelihood of further selling pressure. As long as NUPL remained above 0.20, sentiment was supportive of a rebound as the catalysts aligned.

Related: Bitcoin’s Strongest Trading Day Since May Points to Possible Rise to 107K dollars

For now, ETH is surpassing Bitcoin

From a technical perspective, Ether has exhibited a cleaner high time frame (HTF) setup than Bitcoin. ETH recently confirmed a breakout of structure (BOS), rising to a 20-day high above $3,200, showing that buyers have broken past resistance and initiated a trend change.

However, BTC still needed a decisive daily close above $96,000 to confirm its own breakout, leaving ETH with a structural advantage.

The ETH/BTC daily chart further strengthened this advantage. The pair recently broke above the 30-day consolidation zone, a range where supply has repeatedly capped attempts to rally.

The breakout was supported by a successful retest of the 200-day straightforward moving average (SMA), a trend baseline that has held steady since July. Historically, ETH/BTC reclaiming the 200-day SMA and breaking the multi-week range has coincided with periods of sustained ETH outperformance.

If BTC settles above $94,000 and secures a close above $96,000, it will ease further pressure on the altcoin. In this scenario, ETH is well-positioned to continue the newly established uptrend by retesting the high of $3,650 and, if momentum accelerates, targeting the next expansion level at $3,900, i.e. another 20% from the current prices where external liquidity clusters currently reside.

Related: Bitcoin rejects key 93.5k dollars as Fed bets on interest rate cuts face “strong” bear case

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.