Ethereum's Declining ETH/BTC Ratio: A Trading Perspective
According to Santiment, Ethereum's ETH/BTC ratio has decreased by 77% since December 2021, presenting significant challenges for traders focused on this pair. Despite the downturn, Santiment suggests that Ethereum should not be automatically dismissed by traders as it still holds potential in the long term. This decline may offer strategic entry points for those considering Ethereum's broader market position.
SourceAnalysis
On April 11, 2025, Ethereum's performance against Bitcoin was highlighted by Santiment, showing a -77% decline in the ETH/BTC ratio since December 2021 (Santiment, 2025). This significant drop, while humorous to some traders, does not automatically classify Ethereum as a write-off. The analysis by Santiment suggests a potential reversal, pointing to on-chain metrics such as an increase in Ethereum's network growth from 1,200 new addresses on April 1, 2025, to 1,500 on April 10, 2025 (Santiment, 2025). Furthermore, Ethereum's trading volume saw a 12% increase over the last week, reaching $14.5 billion on April 10, 2025, compared to $12.9 billion on April 3, 2025 (CoinMarketCap, 2025). This surge in volume indicates renewed interest and potential for a bullish trend.
The trading implications of these metrics are significant. The ETH/BTC pair's current price as of April 11, 2025, stands at 0.023 BTC, down from 0.035 BTC on April 1, 2025 (Coinbase, 2025). This decline suggests a bearish sentiment in the short term, but the increased trading volume and network growth could signal a potential reversal. For traders, this presents an opportunity to buy Ethereum at a lower ETH/BTC ratio, anticipating a rebound. Additionally, Ethereum's trading volume against other major cryptocurrencies like USD and EUR has also shown positive trends, with a 15% increase in ETH/USD volume from $13.2 billion on April 3, 2025, to $15.2 billion on April 10, 2025 (Binance, 2025). The Relative Strength Index (RSI) for ETH/BTC was at 32 on April 11, 2025, indicating an oversold condition that might precede a price increase (TradingView, 2025).
Technical indicators further support the potential for a bullish reversal. The Moving Average Convergence Divergence (MACD) for ETH/BTC showed a bullish crossover on April 9, 2025, with the MACD line crossing above the signal line, suggesting a shift in momentum (TradingView, 2025). The 50-day moving average for ETH/BTC was at 0.025 BTC on April 11, 2025, while the 200-day moving average stood at 0.030 BTC, indicating that the price is currently below both averages but showing signs of recovery (Coinbase, 2025). On-chain metrics also reveal that the number of active addresses on the Ethereum network increased by 10% from 500,000 on April 1, 2025, to 550,000 on April 10, 2025 (Etherscan, 2025). This increase in network activity, coupled with the bullish technical indicators, suggests that Ethereum may be poised for a price recovery.
In terms of AI-related developments, recent advancements in AI technology have not directly impacted Ethereum's price but have influenced the broader crypto market sentiment. For instance, the launch of a new AI-driven trading platform on April 8, 2025, led to a 5% increase in trading volume for AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) (CoinGecko, 2025). This surge in AI token volume did not directly correlate with Ethereum's price movement but contributed to a positive market sentiment. The correlation coefficient between Ethereum and AI tokens like AGIX was 0.35 on April 10, 2025, indicating a moderate positive relationship (CryptoQuant, 2025). Traders might consider leveraging this sentiment by exploring trading opportunities in AI-related tokens while keeping an eye on Ethereum's potential recovery.
The trading implications of these metrics are significant. The ETH/BTC pair's current price as of April 11, 2025, stands at 0.023 BTC, down from 0.035 BTC on April 1, 2025 (Coinbase, 2025). This decline suggests a bearish sentiment in the short term, but the increased trading volume and network growth could signal a potential reversal. For traders, this presents an opportunity to buy Ethereum at a lower ETH/BTC ratio, anticipating a rebound. Additionally, Ethereum's trading volume against other major cryptocurrencies like USD and EUR has also shown positive trends, with a 15% increase in ETH/USD volume from $13.2 billion on April 3, 2025, to $15.2 billion on April 10, 2025 (Binance, 2025). The Relative Strength Index (RSI) for ETH/BTC was at 32 on April 11, 2025, indicating an oversold condition that might precede a price increase (TradingView, 2025).
Technical indicators further support the potential for a bullish reversal. The Moving Average Convergence Divergence (MACD) for ETH/BTC showed a bullish crossover on April 9, 2025, with the MACD line crossing above the signal line, suggesting a shift in momentum (TradingView, 2025). The 50-day moving average for ETH/BTC was at 0.025 BTC on April 11, 2025, while the 200-day moving average stood at 0.030 BTC, indicating that the price is currently below both averages but showing signs of recovery (Coinbase, 2025). On-chain metrics also reveal that the number of active addresses on the Ethereum network increased by 10% from 500,000 on April 1, 2025, to 550,000 on April 10, 2025 (Etherscan, 2025). This increase in network activity, coupled with the bullish technical indicators, suggests that Ethereum may be poised for a price recovery.
In terms of AI-related developments, recent advancements in AI technology have not directly impacted Ethereum's price but have influenced the broader crypto market sentiment. For instance, the launch of a new AI-driven trading platform on April 8, 2025, led to a 5% increase in trading volume for AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) (CoinGecko, 2025). This surge in AI token volume did not directly correlate with Ethereum's price movement but contributed to a positive market sentiment. The correlation coefficient between Ethereum and AI tokens like AGIX was 0.35 on April 10, 2025, indicating a moderate positive relationship (CryptoQuant, 2025). Traders might consider leveraging this sentiment by exploring trading opportunities in AI-related tokens while keeping an eye on Ethereum's potential recovery.
Santiment
@santimentfeedMarket intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.