One widely watched indicator for assessing 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, its lowest level in 10 months and the weakest reading since July 2025. The decline comes as ether dropped more than 2% on Tuesday, compared with 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 against 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 crypto assets, reflecting stronger risk sentiment. Conversely, a falling ratio suggests investors are favoring 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 driven by bitcoin’s outperformance following the launch and success of U.S. spot bitcoin ETFs in January 2024, which attracted significant institutional inflows.
The ratio eventually bottomed at 0.01770 in April 2025 during the market turmoil surrounding President Trump’s “Liberation Day” tariff announcements. It then rebounded sharply, gaining roughly 135% later in 2025 before reversing course again. Despite that recovery, the ratio has since fallen another 35% from its recent highs.
Technically, the ETH/BTC ratio remains substantially 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.
