The ETH/BTC ratio, which reflects the price of Ethereum (ETH) relative to Bitcoin (BTC), has remained below 0.05 for 14 consecutive months, according to a recent report by CoinGecko. This is despite increased institutional adoption of Ethereum and a surge in its price that led to new all-time highs (ATH) in recent months.
The ETH/BTC ratio reached its record high of 0.148 on June 12, 2017, during the ICO boom. However, data shows that over the past decade, the ETH/BTC ratio has only reached 0.1 for a mere 40 days, representing just 1.1% of the time. In contrast, the ratio has been below 0.05 for 2,123 days, or 57.6% of the time. The longest period ETH/BTC remained below 0.05 was approximately 33 months, from August 14, 2018, to April 28, 2021.
As of 2025, the annual average ETH/BTC ratio is at a five-year low of 0.027, comparable to the average during the bear market of 2019-2020. This is largely attributed to Bitcoin's resilience in attracting institutional investment and shifts in cryptocurrency rotation trends.
Institutional Adoption and Ethereum's Fundamentals
Ethereum has cemented its position as the preferred blockchain for institutional players. Over 50 non-crypto enterprises, including financial giants like BlackRock, PayPal, and Deutsche Bank, are building on Ethereum and its Layer 2 solutions. This interest is fueled by Ethereum's increasing role in tokenized real-world assets (RWAs), stablecoin infrastructure, and on-chain finance, making it a foundational layer for Web3.
Demand from institutional investors and large holders significantly contributed to Ethereum's rally from $1,400 in April 2025 to nearly $5,000 in late August. U.S. spot ETFs' Ethereum holdings have reached an all-time high of 6.7 million ETH, nearly doubling since the price surge began. Addresses holding between 10,000 and 100,000 ETH have also accumulated roughly six million tokens during the same period, bringing their holdings to new highs of 20.6 million ETH.
Market Dynamics and Potential Catalysts
Despite strong institutional backing and a series of upgrades, Ethereum's price performance has lagged behind Bitcoin. The ETH/BTC ratio continues to slide, reflecting a disconnect between Ethereum's strong fundamentals and current market sentiment.
Several factors could potentially reverse this trend and propel the ETH/BTC ratio higher:
For the ETH/BTC ratio to increase, Ethereum needs to demonstrate its ability to convert its strong fundamentals into sustained price appreciation. If the ETH/BTC ratio manages to reclaim 0.05, even with BTC ranging between $100,000 and $124,000, ETH could reach new all-time highs of $5,000 to $6,200.
