FameEX Hot Topics | ETH Fails to Keep Pace with Bitcoin, Ratio Stuck Under 0.05 Even Amid Record Highs

The ETH/BTC ratio, a key metric watched closely by traders, continues to demonstrate significant weakness, struggling beneath the 0.05 level since July 2024. This current stagnation is particularly notable when compared to its all-time high of 0.14, reached at the height of the ICO boom in June 2017. After a brief uptick to 0.04 in August, the ratio has retreated to approximately 0.039. This persistent undervaluation against Bitcoin culminated in a severe low of 0.02 in March, a five-year nadir driven by macroeconomic fears and international trade tensions that sparked a flight to Bitcoin's relative safety.

Despite its underperformance in this key pairing, Ethereum's absolute price action has been undeniably bullish. The market witnessed a robust recovery from its mid-year lows, with ETH price rallying an impressive 155% since July. This momentum culminated in a new all-time high of $4,957 on August 24th, before undergoing a modest correction of roughly 6.7%. This powerful appreciation was not isolated speculation but was driven by fundamental institutional adoption, including its use for corporate treasuries and massive inflows into the newly launched spot Ethereum ETFs.

Historical analysis provides crucial context for this divergence. According to analyst James Check, Ethereum has historically outperformed Bitcoin only 15% of the time since its inception, with the bulk of that success confined to its early years (2015-2017) following its groundbreaking launch as the first major smart contract platform. A clear trend has emerged since 2020, with Bitcoin consistently dominating the performance battle. This historical precedent suggests that overcoming Bitcoin's momentum is a significant challenge, even with strong bullish catalysts for Ethereum.

Looking ahead, the market's focus is now on when Ethereum might finally conquer the $5,000 psychological barrier, which it narrowly missed by just $43 in August. Analysts like Jake Kennis of Nansen suggest that after such a powerful and rapid price expansion, a period of consolidation is likely and healthy. The prevailing analyst view is that while the fundamentals remain strong, it may take several weeks or even months for Ethereum to accumulate enough energy to break through its current resistance and set a new, sustained record high.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.