Ethereum’s Struggle: Will It Outshine Bitcoin? 🏛️

by

The ETH/BTC ratio, a most vexing metric of Ethereum’s (ETH) strength against Bitcoin (BTC), has remained below 0.05 for over a year, much to the dismay of Ethereum’s ardent admirers, who have long hoped for a triumph over the venerable Bitcoin.

According to Bitget’s esteemed Chief Analyst, Ryan Lee, Bitcoin’s role as the market’s ‘anchor asset’ explains why Ethereum continues to lag. He also shared with BeInCrypto what conditions would be needed for ETH to finally close the gap, a feat as improbable as a gentleman’s return from the dead. 🕯️

Why the ETH/BTC Ratio Remains Depressed After a Year

It is worth noting that the ETH/BTC ratio serves as a barometer for investor sentiment, though one might argue it is more a reflection of their indecision. When the ratio rises, it suggests that investors are favoring Ethereum over Bitcoin, often due to strong demand from developments such as staking, DeFi activity, or broader optimism in altcoins. 📈

Conversely, when the ratio falls, it indicates Bitcoin is outperforming. This may reflect risk-off sentiment, where investors prefer the relative safety of Bitcoin or expect stronger returns from it. A most prudent choice, one might say, though not without its critics. 🧑‍⚖️

In April, BeInCrypto highlighted that the metric fell to a 5-year low amid ETH’s price struggles. However, what came after was a notable recovery. The ratio even went as high as 0.043 on August 24, coinciding with ETH’s all-time high (ATH). Still, despite record ETH performance, the ratio could not cross the 0.05 threshold, a level last seen in August 2024. At the time of writing, the metric had fallen slightly to 0.038. 📉

But what’s behind the lag? Bitget’s Chief Analyst Ryan Lee observed that although over $4 billion poured into Ethereum exchange-traded funds (ETFs) in August, the asset’s relative underperformance emphasizes Bitcoin’s greater appeal to cautious investors amid an uncertain macro environment. 🧐

This reinforces Bitcoin’s status as the industry’s ‘anchor asset.’ Meanwhile, Ethereum’s long-term potential is tied to the expanding adoption of its DeFi and tokenization ecosystem. A most promising, though perhaps overly ambitious, endeavor. 🧵

“The ETH/BTC ratio remaining below 0.05 for over a year, even as Ethereum hits record highs and attracts billions in ETF inflows, underscores Bitcoin’s enduring position as crypto’s ultimate store of value,” Lee told BeInCrypto.

The analyst explained that Ethereum’s chances of narrowing the valuation gap may depend on quarterly ETF inflows exceeding $9 billion, the smooth implementation of upcoming network upgrades, and substantial growth in tokenized assets and DeFi volumes. A tall order, to be sure, but not impossible. 🤔

“Such catalysts would give ETH a platform to outperform BTC, complementing Bitcoin’s store-of-value narrative with utility-driven demand,” he added.

Lee added that broader macro conditions will be crucial in shaping the market outlook. Today, a highly expected 25-basis-point rate cut from the Federal Reserve would lower borrowing costs and inject liquidity, creating a supportive environment for risk assets. A most welcome development, though one must wonder if it will be enough. 💸

In such a scenario, Bitcoin could move toward the $150,000-$200,000 range by year-end, while Ethereum might rise to $5,800-$8,000, driven by ETF inflows and continued network expansion. A most tantalizing prospect, though one that may still leave Ethereum in the shadow of its more esteemed counterpart. 🧊

“Together, these trends reflect a maturing market where Bitcoin and Ethereum drive industry growth in tandem, provided inflation stays contained and no major geopolitical shocks disrupt sentiment,” Lee mentioned to BeInCrypto.

ETH/BTC Ratio at a Crossroads: Altcoin Season Ahead or Bearish Breakdown?

Meanwhile, some analysts anticipate an imminent rise in the ratio. In a post on X (formerly Twitter), an analyst pointed out that after a 150% surge, the ETH/BTC ratio has been trading sideways. A most peculiar state of affairs, one might say. 🔄

He suggested the rally is still intact. Yet, the analyst anticipates Bitcoin will take the lead for a while before Ethereum picks up again, with the next leg higher likely beginning around late October or early November. A most hopeful prediction, though one that may yet be dashed. 🕰️

Another analyst drew parallels to the 2021 cycle, when similar ETH/BTC formations heralded an altcoin season. A most intriguing comparison, though one that may or may not hold true. 🌟

Most of you might not realise but altcoin season is well on the way, according to this $ETH / $BTC chart.

History may not repeat but it’ll often rhyme.

Who’s excited?

– Hardy (@Degen_Hardy) September 15, 2025

However, not all views are bullish. Analyst Colin Talks Crypto warned of a forming head-and-shoulders pattern, a setup typically seen as bearish. If confirmed, this could point to weakening momentum and the possibility of a trend reversal, signaling that Ethereum may lose ground against Bitcoin in the near term. A most dire warning, though one that may yet be premature. 🚩

Thus, the ETH/BTC ratio remains at a crossroads. While ETF inflows, DeFi growth, and macro liquidity could provide Ethereum the momentum to challenge Bitcoin’s dominance, chart patterns and investor caution suggest risks remain. For now, the ratio reflects a market still weighing whether Ethereum’s utility can overcome Bitcoin’s anchor role as the crypto industry’s store of value. A most delicate balance, indeed. 🧭

Read More

2025-09-17 11:13