The closely watched relative strength indicator for Ethereum relative to Bitcoin has climbed to a three-month high on the back of a surge in network activity and record stablecoin inflows on Ethereum.
On Wednesday, the Ethereum-to-Bitcoin ratio was trading around 0.0313, above the 2026 low of around 0.028 in February but still well below the January 18 high of nearly 0.038. Ethereum has gained 4% in the past seven days and is trading near $2,325, outpacing Bitcoin’s 3.9% gain over the same period.
The ETH/BTC ratio tracks the relative price of Ethereum to Bitcoin on cryptocurrency exchanges and is one of the most widely followed risk appetite metrics across the digital asset market.
The rising ratio indicates that capital is flowing into Ethereum and, by extension, into riskier parts of the crypto ecosystem. The falling ratio indicates a preference for the relative safety of Bitcoin.
The pair peaked above 0.08 in late 2021 before entering a long-term decline that accelerated in 2024 and 2025, weighed down by demand driven by Bitcoin ETFs, weakening Ethereum base layer fee revenue following the Dencun upgrade, and broader altcoin rotation.
When Ethereum outperforms Bitcoin on a risk-on day rather than simply following, historically it is a sign that capital is starting to rotate rather than chase the same trades. If Ethereum performs better than Bitcoin during the next pullback, the signal will strengthen.
Part of the reason for the continued rise is Ethereum’s on-chain fundamentals, which run counter to the token’s depressed valuation.
Artemis data shows that new network users surged 82% quarter-on-quarter to 284,000 in the first quarter, and total transaction volume reached a record 200.4 million in the quarter, an increase of 43% from the previous quarter.
The supply of stablecoins on Ethereum per token terminal has also reached an all-time high of $180 billion, growing 150% over the past three years. The network holds approximately 60% of the global stablecoin market, solidifying its dominance as the primary settlement layer for tokenized dollars and demonstrating that ETH will remain an anchor of long-term demand even if short-term price action lags.
However, Ethereum remains more than 50% below its 52-week high of $4,831, with the ratio needing to reclaim the 0.035 zone on a weekly close to provide evidence of recovery momentum beyond a short squeeze bounce.
