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Ethereum (ETH) has surged 40% in Q2 2025, outperforming Bitcoin’s 32.86% gain during the same period. Analysts now believe a breakout above $3,000 may be imminent, fueled by growing DeFi activity and rising institutional interest.

Ethereum Outpaces Bitcoin in Q2

According to a recent post by crypto influencer Ash Crypto, Ethereum posted stronger quarterly gains than Bitcoin, making it one of the top-performing assets in Q2. The momentum has left analysts speculating whether ETH can sustain its upward trend into the latter half of the year.

ETH is outperforming Bitcoin in Q2

Money if flowing into ETH and I think
Q3-Q4 is going to be massive for $ETH pic.twitter.com/oQviVxJhya

— Ash Crypto (@Ashcryptoreal) May 27, 2025

Why Ethereum Is Gaining Momentum

Several factors are driving Ethereum’s strong performance:

• DeFi growth: More users are locking value in decentralized applications built on Ethereum.
• Institutional demand: Products like Grayscale’s Ether Trust are seeing smaller discounts, and Ether futures volumes are rising.
• Seasonal trends: Ethereum’s past performance suggests Q4 is often its strongest quarter.

Historically, Bitcoin posts an average Q4 return of 85.42%, while Ethereum averages 23.85%. In major bull years like 2017 and 2020, ETH even posted triple-digit gains.

Utility and Upgrades Make ETH More Attractive

Unlike Bitcoin, which is mostly viewed as digital gold, Ethereum powers decentralized applications across finance, gaming, and NFTs. This utility gives ETH a broader use case.

In addition, continued network upgrades aim to make Ethereum faster and cheaper, which could attract more developers and investors. One notable example is SharpLink Gaming, which is planning to raise nearly $500 million to build an Ethereum-based treasury strategy.

Analysts Expect Breakout Above $3,000

Things can change quickly. This one is also looking for a breakout upwards to $3,000+.$ETH is probably the best play to have in your base portfolio. pic.twitter.com/G8hD6CR9Id

— Michaël van de Poppe (@CryptoMichNL) May 27, 2025

Crypto analyst Michael van de Poppe recently shared his outlook on ETH. He highlighted key resistance levels at $2,500 and $3,600, noting that breaking these points could lead to strong upward momentum.

This is about to break upwards and that will likely be a violent move on $ETH.

Super strong today against #Bitcoin. pic.twitter.com/WrlIWkY0D8

— Michaël van de Poppe (@CryptoMichNL) May 27, 2025

Van de Poppe also emphasized that Ethereum remains a critical holding for any serious crypto investor. If ETH crosses the $3,000 threshold, it would confirm its bullish trend and reestablish its dominance among altcoins.