A closely watched crypto market indicator is pointing to softening risk appetite, as investors continue to lean toward bitcoin over ether.
The ether-to-bitcoin (ETH/BTC) ratio remains one of the most widely used metrics for gauging whether the broader crypto market is in a risk-on or risk-off phase. On Tuesday, the ratio slipped to 0.02835, marking its lowest level in 10 months and its weakest point since July 2025.
The move comes amid renewed relative weakness in ether, which fell more than 2% on the day, compared with bitcoin’s decline of just over 1%. From its August peak of 0.04324, the ratio has now dropped more than 35%, underscoring ether’s sustained underperformance.
The ETH/BTC ratio tracks ether’s performance against bitcoin across major exchanges and is often interpreted as a barometer of investor sentiment. Rising levels typically indicate capital rotation into ether and other higher-risk crypto assets, signaling stronger risk appetite. In contrast, a declining ratio suggests a shift toward bitcoin, which is generally viewed as the market’s more defensive asset.
Historically, the pair reached a high above 0.08 in December 2021 before entering a prolonged, multi-year downtrend. Much of the pressure through 2024 and into 2025 stemmed from bitcoin’s dominance following the launch of U.S. spot bitcoin ETFs in January 2024, which drew substantial institutional inflows.
The ratio ultimately bottomed at 0.01770 in April 2025 during heightened market volatility tied to President Trump’s “Liberation Day” tariff announcements. It later staged a sharp recovery, climbing roughly 135% over the course of 2025, before reversing direction once again. Even after that rebound, the ratio has since declined another 35% from its recent highs.
From a technical perspective, the ETH/BTC ratio continues to trade well below its 200-week moving average, currently at 0.04828, reinforcing the view that ether remains in a long-term downtrend relative to bitcoin.
