The ETH/BTC ratio, an important measure of Ethereum (ETH)’s strength against Bitcoin (BTC), remains at less than 0.05 for more than a year, underscoring the struggle to gain position against the biggest cryptocurrency, even while many analysts have described it as the “Ethereum season.”
Bitcoin’s role as a “anchored asset” in the market explains why Ethereum continues to be late, according to Ryan Lee, chief analyst at Bitget. He also shared with Beincrypto what conditions ETH needs to be finally filled in the gap.
Why the ETH/BTC ratio is declining in one year
It is noteworthy that the ETH/BTC ratio acts as a barometer of investor sentiment. The rise in the ratio suggests that investors are favoring Ethereum over Bitcoin. This is often due to strong demand from developments such as staking, debt activity, or broader optimism for altcoins.
Conversely, a lower proportion indicates that Bitcoin is outperforming. This could reflect risk-off sentiment where investors prefer the relative safety of Bitcoin or expect stronger returns from it.
In April, Beincrypto highlighted that metrics fell to the first five years in the ETH price struggle. But what came afterwards was a noticeable recovery. This ratio reached 0.043 on August 24th, coinciding with ETH’s all-time high (ATH).
Still, despite record ETH performance, the ratio failed to exceed the 0.05 threshold, the last seen level in August 2024. At the time of writing, the metric had dropped to just 0.038.
ETH/BTC ratio. Source: TradingView
But what’s behind the rug? Bitget chief analyst Ryan Lee observed that while more than $4 billion was poured into Ethereum Exchange-Traded Funds (ETFS) in August, the relative inperformance of assets highlights the greater appeal of Bitcoin to cautious investors in an uncertain macro environment.
This will strengthen Bitcoin’s status as an industry’s “anchor assets.” Meanwhile, Ethereum’s long-term potential is tied to the growing adoption of its defi and tokenization ecosystem.
“The Ethereum remains below 0.05 for over a year, the ETH/BTC ratio highlights Bitcoin’s lasting status as Crypto’s ultimate value reservoir, despite Ethereum recording high and attracting billions of ETF inflows,” Lee told Beincrypto.
Analysts explained that the possibility of narrowing down Ethereum valuation gaps could depend on quarterly ETF inflows of over $9 billion, smooth implementation of upcoming network upgrades, and significant growth in tokenized assets and denials.
“Such a catalyst gives ETH a platform that surpasses BTC and complements the valuable story of Bitcoin with utility-driven demand,” he added.
Lee added that broader macro terms are important in shaping market outlook. Today, the highly anticipated 25 point rate reductions from the Federal Reserve reduce borrowing costs, inject liquidity and create a support environment for risky assets.
In such a scenario, Bitcoin could move to the $150,000-200,000 range by the end of the year, but Ethereum could rise to $5,800-8,000 driven by an influx of ETFs and continuous network expansion.
“Together, these trends reflect the mature market where Bitcoin and Ethereum drive industry growth, provided that major geopolitical shocks disrupt emotions,” Lee noted Beincrypto.
ETH/BTC ratio at intersections: season or bearish breakdown ahead of the Altcoin season?
Meanwhile, some analysts expect an imminent rise in the ratio. In a post on X (formerly Twitter), analysts noted that the ETH/BTC ratio is trading sideways after a 150% surge.
ETH/BTC ratio forecast. Source: x/zynweb3
He suggested that the rally was still unharmed. However, analysts expect Bitcoin to lead for a while before Ethereum brings it back in, with the next leg likely to start in late October or early November.
Another analyst is similar to the 2021 cycle, when a similar ETH/BTC formation told the AltCoin season.
According to this $eth/$btc chart, most people may not notice, but the Altcoin season is going well.
History may not repeat itself, but it will often rhyme.
Who’s excited? pic.twitter.com/x8swkcao7q
– Hardy (@degen_hardy) September 15, 2025
However, not all views are bullish. Analyst Colin says Crypto has warned about the head and shoulder patterns that have formed. This is a setup that is usually considered bearish. If confirmed, this refers to a weakening of momentum and a possible trend reversal, indicating that Ethereum could lose ground against Bitcoin in the near future.
Head and shoulder patterns on ETH/BTC charts. Source: x/colintcrypto
Therefore, the ETH/BTC ratio remains at the intersection. ETF influx, Defi’s growth, and macro liquidity could provide Ethereum with momentum to challenge Bitcoin’s advantage, but chart patterns and investor attention suggest that risk remains. For now, this ratio reflects a market that still emphasizes whether Ethereum’s usefulness can overcome the role of Bitcoin’s anchor as a valuable repository for the crypto industry.
What does the post Ethereum need to surpass Bitcoin? Bitget’s chief analyst explains that he first appeared in Beincrypto.
