Understanding the Significance of ETH/BTC Ratio Approaching a Critical Level
Decoding Market Signals: Unfavorable Trends and Technical Indicators Highlight Potential Downside Risk as 77% of ETH/BTC Trading Days Prove Unprofitable
Key Points
- The ETH/BTC ratio is nearing a crucial 0.05 BTC level, indicating potential further losses if key support fails.
- Institutional preference for Bitcoin and lack of catalysts for Ethereum contributes to ETH’s extended underperformance.
The ratio of Ethereum (ETH) to Bitcoin (BTC) has been facing continuous struggles.
A whopping 77% of trading days have been unprofitable for ETH holders against BTC.
Interpreting the ETH/BTC Profitability Chart
The profitability chart of ETH/BTC over time is marked by profitable and unprofitable trading days.
The green days represent when ETH outperformed BTC, while red days highlight periods of underperformance.
The orange-shaded area at the bottom shows the increasing percentage of unprofitable days over time.
Since early 2022, ETH has consistently underperformed Bitcoin, with only a few brief periods of profitability.
The bearish trend was reinforced by a downturn in early 2025, pushing the unprofitable trading days beyond the 77% mark—a historically significant threshold.
ETH/BTC Price Action and ETH’s Struggles
The ratio chart also reveals ETH/BTC’s daily price performance and extreme volatility.
A brutal downward wick in the latest price action indicates a sharp rejection from resistance levels and heavy selling pressure.
Negative performance bars outnumber positive ones, indicating a persistent bearish trend.
From mid-2024, ETH has struggled to maintain upward momentum against BTC, forming a steady downtrend.
Each recovery attempt has been met with selling pressure, pushing the ETH/BTC ratio lower.
The latest drop saw ETH’s value relative to BTC sink to a multi-year low, with the ETH/BTC ratio around the 0.05 level—a key psychological and technical support zone.
Bitcoin remains the preferred asset for institutional adoption, especially after spot Bitcoin ETF approvals in early 2024.
Capital continues to flow into BTC rather than altcoins, including ETH.
While Ethereum remains a significant blockchain, investors favor BTC as a safer bet.
Unlike Bitcoin, which benefits from macroeconomic narratives and institutional adoption, Ethereum lacks immediate, strong catalysts.
Despite the approval of the ETH ETF, the impact has not been significant, as seen from its flow compared to the BTC ETF flow.
What’s Next for ETH/BTC?
With the ETH/BTC ratio approaching historically significant support levels, traders should closely watch the 0.05 BTC level.
If the ratio breaks below this level, it could drop further towards 0.045 or even lower.
This could trigger a wave of liquidations and panic selling.
While the trend remains bearish, a rebound from key support levels is possible, especially if Ethereum sees renewed institutional interest.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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