It is a rise that does not go unnoticed: the ETH/BTC ratio of crypto ETFs has tripled in three months, according to CryptoQuant. Translation: institutional investors, who still favored Bitcoin, now seem to be betting more heavily on Ethereum. In August, this ratio rose from 0.05 to 0.15, indicating a massive transfer of allocation within portfolios.
Another strong indication: Ethereum recently reached $4,743, its highest since 2021, nearing its all-time high. At the same time, the ETH/BTC price ratio surpassed its 365-day moving average, an indicator that, historically, signals phases of outperformance for ether.
Trading volumes don’t lie either: for the past four weeks, the weekly spot volume of ETH has surpassed that of BTC. Latest figure as of date: $24 billion versus $14 billion, according to CryptoQuant.
This progress is explained by the conjunction of several factors: increasing demand via ETFs, long-term investors arbitraging their positions, and a market sentiment leaning towards Ethereum's use cases — staking, DeFi, tokenization.
Behind the enthusiastic figures, certain signals call for caution. According to CryptoQuant, ETH inflows to exchanges recently surpassed those of Bitcoin. This suggests that some holders are considering taking profits, especially after such a rapid rise.
Another discreet alert: the MVRV ETH/BTC ratio rose from 0.4 to 0.8 between May and August, approaching the threshold of 0.9. For analysts, this level is often synonymous with relative overvaluation of ether, an area where sharp reversals are not uncommon.
Let's add to this a surge in activity in the perpetual futures contracts of ETH, whose open interest is growing faster than that of Bitcoin. The interest is there, yes, but the higher it rises, the greater the risk of a domino effect in case of profit-taking.
In summary, Ethereum leads the dance… but the music could slow down. ETFs support the rise, but strong investors remain vigilant for a possible consolidation.
To better understand this dynamic in motion, here are some key points:
▫️ETH/BTC ratio of ETFs: rose from 0.05 to 0.15 between May and August (source: CryptoQuant);
▫️ETH/BTC spot volume ratio: 1.66 – the highest level since June 2017;
▫️MVRV ETH/BTC: rose from 0.4 to 0.8 – close to an overvaluation zone;
▫️Weekly spot amount: ETH ($24 billion) surpasses BTC ($14 billion), for 4 consecutive weeks;
▫️ETH Open Interest: accelerating increase compared to Bitcoin's.
Ethereum is entering a new era. If the market sometimes wobbles, the signals converge: it is the combination of ETFs and 401(k)-type retirement savings that could permanently transform this network. Not just a simple altcoin, but a central infrastructure of tomorrow's crypto economy.
