Ethereum Shows Early Strength as ETH/BTC Breakout Aligns With Rising Liquidity Signals

ETH/BTC breaks a prolonged downtrend as new wallet growth and ETF inflows support a shift in trend.

USDC inflows rise sharply on December 1, aligning with renewed Ethereum price strength above key support.

ETH trades near $3,103 as liquidity rotation signals early momentum despite short-term volatility.

Ethereum shows its first real structural improvement in months, with renewed strength against Bitcoin and a notable rise in liquidity metrics. Market flows, technical changes, and new network activity shape the current trend.

Ethereum/BTC Breakout Marks a Shift in Market Rhythm

Ethereum shows renewed activity after months of muted performance against Bitcoin. The pair had moved under a clear downtrend since early September. Each attempt to break above the diagonal resistance produced another rejection, keeping the ratio subdued. The latest candle shifted this pattern with a clean move above the trendline.

Mr. APE, also known as GEM Hunter, noted that ETH delivered a near-10% bounce in the ratio. He stated the move carried more strength than prior attempts. His view suggested that the shift could represent the first spark from Ethereum after months of pressure. The candle broke the trend with a strong close, reflecting a change in momentum.

The move followed weeks of compression as ETH/BTC traded in a narrow range. This phase created shallow highs and lows often linked with accumulation. The breakout formed as price left the range with pace, matching recent strength in Ethereum’s USD chart. ETH trades at $3,103.71 as of writing, after a 2.37% weekly gain.

Fusaka Upgrade and On-Chain Trends Support the Move

The Fusaka upgrade contributed to renewed interest in Ethereum. It expanded Layer-2 capacity using new blob mechanics and PeerDAS improvements. These changes arrived during a period of low volatility, giving the breakout added weight.

Mr. APE added that the network registered 190,000 new wallets in a single day. He also noted $140 million flowing into the BlackRock ETH ETF. These data points coincided with the strengthening technical framework of the ETH/BTC pair.

As of writing, Bitcoin is trading at $90,633.92, following a decrease of 0.96% last week. The relative performance change indicates an increasing demand towards Ethereum Market participants are watching how the pair behaves above the 0.0348–0.0353 support band.

USDC Liquidity Signals Reinforce Ethereum’s Momentum

On-chain USDC data from November 28 to December 5 shows shifting liquidity conditions. Activity started strong near 900,000 units before falling sharply on November 29 and 30. This decline aligned with softening price action near $3,050.

Source: Cryptoquant

A sharp rise occurred on December 1 when USDC activity exceeded 1.2 million units. This surge appeared before Ethereum’s price recovery toward $3,180 on December 2 and 3. The increase in liquidity supported the upward move.

USDC volumes remained elevated until December 4 but declined on December 5. The price eased to $3,110 as activity cooled. The pattern suggests that liquidity rotation continues to shape Ethereum’s near-term structure and broader momentum.

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