Ethereum Rallies as Crypto Market Sees First Bullish Quarter Since 2025

The crypto market is showing signs of recovery in Q3, with the total market cap gaining over 6% so far this quarter. This marks the first time since Q3 2025 that the market has been on track for a bullish quarterly close.

One key area to watch is Ethereum's performance against Bitcoin. The ETH/BTC ratio has climbed over 10% in Q3, putting it on track for its strongest quarterly performance since the 56% rally in Q3 2025.

The rotation from BTC into ETH is already underway, with Ethereum surging 18.55% in July, more than double Bitcoin's return. This trend suggests that investors are moving further out the risk curve and rotating capital into Ethereum.

However, what if this is more than just a typical rotation cycle? Historical data shows that Ethereum's market structure may be stronger than initially thought, with ETH dominance closing July up over 11%.