The ratio of Ethereum (ETH) to Bitcoin (BTC), known as ETH/BTC, has been encountering significant challenges, with a considerable 77% of trading days resulting in losses for ETH holders compared to BTC.
The recent volatility in the market has worsened these conditions, as evidenced by data from transactions and price charts. But what implications does this hold for traders and investors?
Deciphering the Significance of ETH/BTC Profitability Trends
By examining the ETH/BTC profitability chart, one can track the performance of ETH against BTC over time, identifying days of profitability marked in green and underperformance marked in red.
The shaded orange region at the bottom indicates a rising percentage of days with losses occurring over time.
Scrutiny reveals that starting from early 2022, ETH has consistently lagged behind Bitcoin, with only sporadic periods of profitability.
The recent downturn in early 2025 has further solidified this bearish pattern, with the number of unprofitable trading days surpassing 77%—a threshold of historical importance.
Price Movement Analysis for ETH/BTC: Intense Volatility Noted
An analysis of the ratio chart showcases the daily price movements of ETH/BTC, emphasizing extreme fluctuations.
The most recent price action saw a sharp decline, accentuating a swift rejection from resistance levels and substantial selling pressure.
Negative daily performance bars outnumber positive ones, indicating a prevalent bearish trajectory.
Since mid-2024, ETH has struggled to sustain an upward trend against BTC, forming a consistent downtrend. Every attempted recovery has been met with selling pressure, driving the ETH/BTC ratio downwards.
The recent decline plunged ETH’s value relative to BTC to a multi-year low, placing the ETH/BTC ratio around the 0.05 mark—a critical psychological and technical support level.
Challenges Faced by ETH in Comparison to BTC
Bitcoin remains the preferred choice for institutional investment, particularly after the approval of spot Bitcoin ETFs in early 2024. Capital inflows continue to favor BTC over alternative coins like ETH.
While Ethereum remains a prominent blockchain platform, investors view BTC as a safer investment option.
Unlike Bitcoin, which benefits from broader economic narratives and institutional endorsements, Ethereum lacks immediate, compelling catalysts.
Despite the approval of an ETH ETF, its impact has been minimal compared to the flow towards BTC ETFs.
Future Prospects for ETH/BTC
As ETH/BTC nears critical support levels, traders should closely monitor the 0.05 BTC level. A break below this point could lead the ratio to decline further towards 0.045 or beyond.
This scenario might trigger a series of liquidations and panic selling. Despite the prevailing bearish trend, a potential rebound from key support levels remains feasible, particularly if Ethereum attracts renewed interest from institutional investors.