A widely watched indicator to gauge whether the crypto market is in a bullish or bearish phase is the ether/bitcoin (ETH/BTC) ratio.
On Tuesday, the ratio fell to 0.02835, its lowest level in 10 months and the lowest reading since July 2025. The drop comes as ether fell more than 2% on Tuesday, compared to a drop of just over 1% for bitcoin. The ETH/BTC ratio is now down more than 35% from its August high of 0.04324.
The ETH/BTC ratio measures the relative performance of ether versus bitcoin on crypto exchanges and is considered a key indicator of market risk appetite. A rising ratio generally indicates that investors are turning their capital toward ether and other higher-risk crypto assets, reflecting stronger risk sentiment. Conversely, a decline in the ratio suggests that investors favor Bitcoin’s relative stability and defensive characteristics.
The pair peaked above 0.08 in December 2021 before entering a prolonged multi-year downtrend. Much of the weakness through 2024 and into 2025 was due to bitcoin’s outperformance following the launch and success of U.S. bitcoin spot ETFs in January 2024, which attracted large institutional inflows.
The ratio ultimately bottomed at 0.01770 in April 2025, during the market turmoil surrounding President Trump’s “Liberation Day” tariff announcements. It then rebounded sharply, gaining around 135% later in 2025, before reversing again. Despite this recovery, the ratio still fell 35% from its recent highs.
Technically, the ETH/BTC ratio remains significantly below its 200-week moving average, currently at 0.04828, reinforcing the idea that ether remains in a long-term bear market against bitcoin.
