One widely followed indicator for assessing whether the cryptocurrency market is in a bullish or bearish phase is the Ethereum to Bitcoin (ETH/BTC) ratio.
On Tuesday, the ratio fell to 0.02835, its lowest level in 10 months and its lowest level since July 2025. The drop comes as Ethereum fell more than 2% on Tuesday, while Bitcoin fell 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 the relative performance of Ethereum against Bitcoin on cryptocurrency exchanges and is considered a key indicator of market risk appetite. Rising ratios typically indicate that investors are moving funds into Ethereum and other riskier cryptoassets, reflecting stronger risk sentiment. Conversely, a falling ratio suggests investors favor Bitcoin’s relative stability and defensive characteristics.
The currency peaked above 0.08 in December 2021 before entering a long-term multi-year downtrend. Much of the weakness in 2024 and 2025 is due to Bitcoin’s outperformance following the launch and success of the U.S. Spot Bitcoin ETF in January 2024, which attracted large institutional inflows.
The ratio eventually bottomed at 0.01770 in April 2025 during the market turmoil caused by President Trump’s “Liberation Day” tariff announcement. It then rebounded sharply, rising about 135% later in 2025, before reversing again. Despite the recovery, the ratio has fallen another 35% from recent highs.
Technically, the ETH/BTC ratio remains well below the 200-week moving average, currently at 0.04828, reinforcing the view that Ethereum remains in a long-term bear market relative to Bitcoin.