A much-watched indicator to assess whether the crypto market is in a bullish or bearish phase is the ether-to-bitcoin (ETH/BTC) ratio.
On Tuesday, the ratio fell to 0.02835, the lowest level in 10 months and the weakest reading since July 2025. The drop comes as ether fell more than 2% on Tuesday, compared to bitcoin’s decline of just over 1%. The ETH/BTC ratio is now down more than 35% from its August high of 0.04324.
The ETH/BTC ratio measures ether’s relative performance to bitcoin across crypto exchanges and is considered a key gauge of market risk appetite. A rising ratio typically signals that investors are rotating capital into ether and other higher-risk cryptoassets, reflecting stronger risk sentiment. Conversely, a declining ratio suggests that investors favor bitcoin’s relative stability and defensive qualities.
The pair peaked above 0.08 in December 2021 before entering a longer, multi-year downtrend. Much of the weakness through 2024 and into 2025 was driven by bitcoin’s outperformance following the launch and success of US spot bitcoin ETFs in January 2024, which attracted significant institutional inflows.
The ratio eventually bottomed at 0.01770 in April 2025 amid market turmoil surrounding President Trump’s “Liberation Day” tariff announcements. It then rose sharply, rising about 135% later in 2025, before reversing course again. Despite this rebound, the ratio has since fallen another 35% from recent highs.
Technically, the ETH/BTC ratio remains significantly below its 200-week moving average, currently at 0.04828, reinforcing the view that ether remains in a long-term bear market relative to bitcoin.
