Ethereum may be showing early signs that the market is nearing a big rally.
The asset has shed capital since its peak in September 2025, and its market valuation has fallen by $373.83 billion, more than its current valuation. However, data suggests that Ethereum’s market cap could hold the answer as to whether the downtrend is still ongoing or if a reversal is near.
Ethereum and Tether market capitalizations match for the first time
Ethereum’s market cap and Tether’s market cap reached the same level for the first time, with both reaching approximately $186.87 billion.
While convergence itself is a rare event, the ratio at which these two assets track each other reveals something more significant. This means that it has reached the support of the descending channel in which it is trading.
This ratio, currently at 1.03, has reached its support and trading in this zone was previously marked. $ETHreached the bottom, leading to a backlash. More broadly, the indicator has correctly determined Ethereum’s turning point eight times (four highs and four troughs).
If this pattern holds, Ethereum could begin a multi-week rally that will recoup the money that has flowed out of the asset over the past few months.
US investors are sending mixed signals on Ethereum
US investors are one group to watch, with analysis showing continued bidding that began on May 28th.
The Coinbase Premium Index, which measures the difference between Ethereum’s U.S. spot price and its price on global exchange Binance, showed strong demand, rising from -0.17 to -0.04.
The rally here means that US demand on Binance is outpacing the global market, but it hasn’t translated into an outright buy as the US Spot Ethereum ETF data shows mostly selling.
From May 28 through the last trading session, the Fund recorded outflows every day except June 4, when total net inflows were $19.04 million.
spot $ETH However, ETF flows remain a small fraction of total U.S. trading, showing a disparity that suggests crypto-oriented investors remain bullish while traditional investors remain very bearish.
Broad flows of Ethereum are heading towards sellers
From May 28th to today, buying pressure exceeded selling pressure across the spot market, and there was even more pressure. $ETH Longer bought than sold.
However, selling pressure has increased over the past 48 hours, with total net flows reaching $113.63 million, favoring sellers.
A selloff of this magnitude could represent a simple correction, which is notable since the June 7th net sell flow increased significantly to $111.12 million versus the $2.51 million recorded at the time of writing on June 8th.
It will be interesting to see how this develops and what happens next $ETH It will depend on the activity of US investors and the broader investor base alike.
Final summary
- The rare match between Ethereum and Tether market capitalization is historically distinctive $ETH It remains at the bottom, suggesting a multi-week rally is near.
- U.S. buyers have been stepping in since late May, but a new wave of selling has been seen in the past 48 hours, showing the recovery still faces resistance.
