Ethereum Surges Past $2,300 as Capital Rotates Out of Bitcoin

The Ethereum price has surged above $2,300 after experiencing its largest single-day gain since May 2025, reaching a high of nearly $2,400. This move is significant because it shows that Ethereum is not just following Bitcoin's price but is actually leading the rally.

One reason for this is that capital is rotating out of Bitcoin and into Ethereum for the first time this cycle, resulting in a breakout of the ETH/BTC ratio from its multi-month base. This ratio has been near multi-year lows for most of 2026, with Ethereum falling harder than Bitcoin's 52% drawdown.

Another factor is that Ethereum's tradable supply on exchanges sits at historic lows due to coins being locked in staking contracts and Layer-2 networks. This means that a given amount of buying moves the price much further than it would have two years ago, amplifying the move.