Ethereum (ETH) has historically underperformed Bitcoin, being down 85% relative to BTC since its all-time high, as per Investopedia from July 6, 2025. However, recent developments suggest ETH is catching up. As of July 2025, ETH has gained 23.3% in the past week, with its price around $3,700, as per CoinDesk from July 16, 2025.


Why ETH Could Pump:

  1. Institutional Interest: ETH ETFs have been approved, and since June, ETH treasury plays and ETFs have bought 1.6% of the supply, driving demand, as per CoinDesk.

  2. Staking and DeFi: Ethereum’s role in decentralized finance (DeFi) and staking could increase its utility and demand, especially with staking now possible in ETFs, as noted in CoinDCX from August 6, 2025.

  3. Underownership by Institutions: Compared to BTC, ETH is less owned by institutions, leaving room for catch-up as more investors allocate to crypto, per Investopedia.

Potential Pump Estimate:

Given recent gains of 23.3% in a week and institutional interest, ETH could pump 10-15% in the near term, based on its bullish alignment with EMAs and RSI at 82.66, as per CoinDCX.

Why ETH Could Dump:

  1. Relative Underperformance: If BTC continues to outperform ETH, investors might rotate out of ETH into BTC or other altcoins, as per Investopedia.

  2. Market Correction: As a more volatile asset than BTC, ETH could be hit harder during a broader market correction, as noted in general market trends.

  3. Regulatory Risks: While recent regulatory developments have been positive, any setbacks could negatively impact ETH, as per CoinDesk.


Potential Dump Estimate:

If market sentiment turns bearish, ETH might dump 5-10%, given its higher volatility compared to BTC.

Conclusion:
ETH is more likely to pump than dump in the near term, driven by institutional interest, staking demand, and its role in DeFi. However, investors should be aware of its higher volatility compared to BTC.