Ether-bitcoin ratio bounces from 2026 lows, signaling broader crypto recovery
The ETH/BTC ratio hit its highest since January as Ethereum's network added 284,000 new users in Q1 and stablecoin supply reached a record $180 billion.
Ether-bitcoin ratio bounces from 2026 lows, signaling broader crypto recovery
The ETH/BTC ratio hit its highest since January as Ethereum’s network added 284,000 new users in Q1 and stablecoin supply reached a record $180 billion.
Ether has recently strengthened against bitcoin, with the ETH/BTC ratio rising to about 0.0313, its highest level in three months but still well below its January peak.
The improved ratio is supported by robust on-chain activity on Ethereum, including an 82% quarterly jump in new users, record transaction volumes and stablecoin supply reaching an all-time high of $180 billion.
Analysts say ether must reclaim the 0.035 ETH/BTC level on a weekly closing basis to signal a durable rotation into ether rather than a short-lived bounce, especially with the token still more than 50 percent below its 52-week high.
The ETH/BTC ratio tracks the relative price of ether against bitcoin on crypto exchanges and is one of the most widely followed gauges of risk appetite across the digital asset market.
A rising ratio signals that capital is flowing into ether and, by extension, riskier parts of the crypto ecosystem. A falling ratio points to a preference for bitcoin’s relative safety.
The pair peaked above 0.08 in late 2021 before entering a prolonged decline that accelerated through 2024 and into 2025, dragged lower by bitcoin ETF-driven demand, weakened fee revenue on Ethereum’s base layer following the Dencun upgrade, and a broader rotation away from altcoins.
When ether outperforms bitcoin on risk-on days rather than simply tagging along, it historically suggests capital is beginning to rotate rather than chase the same trade. The signal strengthens if ether holds up better than bitcoin during the next pullback.
Part of the case for a sustained move rests on Ethereum’s on-chain fundamentals, which have been diverging from the token’s depressed valuation.
New users on the network surged 82% quarter-over-quarter in Q1 to 284,000, according to data from Artemis, while total transactions hit a record 200.4 million for the quarter, a 43% increase from the prior period.
Stablecoin supply on Ethereum also reached an all-time high of $180 billion, up 150% over the past three years, per Token Terminal. The network holds roughly 60% of the global stablecoin market, reinforcing its dominance as the primary settlement layer for tokenized dollars and suggesting a long-term demand anchor for ETH even as short-term price action lags.
However, ether is still more than 50% below its 52-week high of $4,831, and the ratio would need to reclaim the 0.035 zone on a weekly close to provide evidence that the recovery has legs beyond a short-squeeze bounce.
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What to know:
Bitcoin held above $74,000 as global risk appetite returned, with major Asian equity benchmarks and the S&P 500 recovering losses tied to the late-February U.S.-Iran conflict.
Strong inflows into U.S. spot bitcoin ETFs, which have now taken in more than $56 billion, are seen as creating a base of long-term…
