As Bitcoin’s rally stalls, Ethereum (ETH) has emerged as the focus of renewed investor interest. Over the past 24 hours, ETH gained over 4%, while Bitcoin dipped 1.5%, falling below $95,000 during Monday’s session. Ethereum’s recent performance outpaced the broader CoinDesk 20 Index, which saw a modest 0.5% increase. This shift in market dynamics comes as traders rotate capital from Bitcoin to smaller, riskier assets, following the cooling of Bitcoin’s surge post-Donald Trump’s election victory.

The ETH/BTC ratio, which tracks Ethereum’s performance relative to Bitcoin, had hit its lowest point since March 2021 last Thursday but has since climbed by 15%, indicating a possible trend reversal. Traders are growing more bullish on ETH in the short term, as evidenced by a rise in Ethereum call options in the market. According to QCP Capital, the expectation is that Bitcoin will trade sideways through December, while attention moves toward Ethereum.

In addition, several hedge funds and family offices have started rotating capital into Ethereum. U.S.-listed Ethereum ETFs, such as BlackRock’s ETHA product, saw significant inflows after six days of outflows, further boosting optimism about Ethereum’s near-term prospects. The shift in focus toward ETH also reflects the broader market sentiment, with traders predicting Ethereum’s outperformance while Bitcoin faces resistance at the psychological $100,000 level.

Bitcoin’s recent rally has driven it to a point where there is significant resistance at $100K, and analysts like Paul Howard from Wincent suggest that Bitcoin may consolidate around these levels through the end of the year. This market hesitation could pave the way for smaller cryptocurrencies like Ethereum to gain more attention and see further price action.

In conclusion, Ethereum appears poised for further outperformance as Bitcoin’s growth slows. With a growing number of investors rotating into ETH, there may be more gains in store for Ethereum relative to Bitcoin in the short term.