<ul data-eligibleForWebStory="true"><li>Ethereum outperformed Bitcoin in Q2 of 2025, with a gain of 51.87% compared to Bitcoin's 30.5% rise.</li><li>Crypto analyst Merlijn The Trader identified a capital rotation into Ethereum, marking the start of 'Phase 2: Ethereum' in the market cycle.</li><li>The ETH/BTC chart suggests a potential altseason as Ethereum's strength increases.</li><li>Investors are depositing more funds into Ethereum than Bitcoin, signifying a shift in focus towards ETH.</li><li>The market cycle model includes four phases: Bitcoin dominance, Ethereum outperformance, large-cap altcoin traction, and 'altseason' with smaller altcoins rallying.</li><li>While Bitcoin had a tough Q1 in 2025, dropping by -11.82%, it recovered with a +30.5% gain in Q2, while Ethereum surged by +51.87% after a -45.41% decline in Q1.</li><li>The ETH/BTC chart shows a major market shift signaling a potential repeat of the 2020 pattern, with funds moving from Bitcoin to Ethereum.</li><li>Merlijn warns not to ignore Ethereum's momentum, suggesting a broader altcoin season could be imminent.</li></ul>

Ethereum Flips Bitcoin in Q2 Returns: Rotation of Capital is Confirmed Says Analyst

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