Ethereum outperformed Bitcoin significantly in the third quarter, with ETH posting more than 70% returns compared to Bitcoin's 43%, according to CoinGlass data. This quarterly performance gap raises questions about whether Ethereum can sustain its momentum into Q4, a quarter that has historically favored Bitcoin.
Since 2021, Ethereum has not outperformed Bitcoin during any fourth quarter. The ETH/BTC ratio is currently trading around the 0.03 resistance level, a threshold it has failed to reclaim since October. A breakout above this level could signal that Ethereum's Q3 momentum is carrying forward.
Despite Ethereum's price performance, institutional capital appears to be favoring Bitcoin. Bitcoin ETFs recorded more than $6 billion in net inflows during Q3, more than double Ethereum's inflows of approximately $3 billion, according to SoSoValue data.
BitMine's recent purchase of 17,000 ETH comes as other major players continue Bitcoin accumulation. Strategy added 1,665 BTC to its holdings, while Strive purchased $94.5 million worth of Bitcoin. This dual accumulation suggests capital rotation back into altcoins is underway.
The broader market landscape shows signs supporting altcoin strength. Bitcoin dominance has declined nearly 1.7% this month, and the Altcoin Season Index has broken above its mid-August high of 61. Ethereum is outperforming Bitcoin on the monthly timeframe as these dynamics shift.
A potential ETH/BTC breakout above the 0.03 resistance could position Ethereum to outperform Bitcoin in Q4 for the first time since 2021.
