A closely watched indicator of Ether’s relative strength against Bitcoin has soared to a three-month high on the back of a surge in network activity and record stablecoin inflows into Ethereum.
The Ether-to-Bitcoin ratio hovered around 0.0313 on Wednesday, up from a 2026 low of around 0.028 in February, but still well below the January 18 high of around 0.038. Ether is up 4% over the past seven days, trading around $2,325, outpacing Bitcoin’s 3.9% rise over the same period.
of $ETHThe /BTC ratio tracks the relative price of Ether to Bitcoin on cryptocurrency exchanges and is one of the most widely observed indicators of the overall digital asset market’s risk appetite.
The rise in the ratio indicates that capital is flowing into the riskier parts of Ethernet and, by extension, the cryptocurrency ecosystem. The decline in the ratio indicates that Bitcoin’s relative safety is favored.
After peaking above 0.08 at the end of 2021, the pair entered a secular decline that accelerated from 2024 to 2025, dragged down by Bitcoin ETF-driven demand, reduced Ethereum base layer fee income following the Dencun upgrade, and widespread rotation away from altcoins.
Ethereum not just outperforming Bitcoin on risk-on days, but outperforming Bitcoin suggests that historically, capital is starting to rotate rather than chasing the same trades. If Ether holds up better than Bitcoin during the next drop, the signal will strengthen.
Part of the rationale for the sustained move rests on Ethereum’s on-chain fundamentals, which are moving away from the token’s depressed valuation.
According to Artemis data, the number of new users on the network rose 82% sequentially to 284,000 in the first quarter, and total transactions reached a record 204 million in the quarter, an increase of 43% sequentially.
The stablecoin supply on Ethereum has also increased by 150% in the past three years, reaching an all-time high of $180 billion, according to Token Terminal. This network accounts for approximately 60% of the global stablecoin market, reinforcing the dominance of tokenized dollars as the primary payment layer and suggesting a long-term demand anchor for tokenized dollars. $ETH Even if short-term price changes are delayed.
However, Ether is still more than 50% below its 52-week high of $4,831, and the ratio would need to regain the 0.035 zone at the week’s close to provide evidence that the recovery is capable of outpacing the short squeeze rebound.
