Ethereum (ETH) outperformed Bitcoin (BTC) for the first time in 2026 as institutional flows shifted and network activity surged, signaling a potential capital rotation.

ETH/BTC Ratio Hits 2026 High

The ETH/BTC ratio climbed to its highest level since January, with funding rates flashing what the analytics firm described as "familiar ETH greed signals."

The move came as Bitcoin ETFs recorded $325 million in net outflows on Apr. 13, led by Fidelity and ARK.

Ethereum ETFs, meanwhile, attracted $7.7 million in daily inflows and $187 million on a weekly basis, their strongest performance of the year. Network activity rose 41% week over week to roughly 3.6 million daily transactions.

Wallets holding at least 100,000 ETH grew from 54 to 57, a pattern that has historically preceded price increases. Still, the picture is not entirely bullish. Stablecoin transfer volume on Ethereum fell 42.6%, and fees dropped nearly 50%, suggesting more transactions but less economic weight behind them.

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Analysts Weigh Rotation Signal

CoinMarketCap analyst CryptoAnu noted that ETH still faces resistance around $2,400 and that the ratio must reclaim 0.035 on a weekly basis to confirm a genuine altcoin rotation. CryptoAnu also pointed to the Pectra upgrade, saying its economic impact "is finally being felt in 2026 with over 30% of supply now staked and locked away."

Analyst Ledgix urged caution, describing the outperformance as "a signal to observe" rather than chase. Ledgix noted that when flows begin to move, ETH is typically the first recipient due to its ecosystem depth, staking yield and growing institutional relevance.

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