Ethereum News Today: ETH/BTC Ratio Drops 5.8% in 60 Hours Spurring Ethereum Speculation

The ETH/BTC ratio has dropped 5.8% over 60 hours as of July 13, 2025, according to Santiment analysis, triggering renewed speculation about Ethereum’s near-term trajectory. This decline signals a significant shift in liquidity, with capital flowing back toward Bitcoin and temporarily weakening Ethereum’s relative strength. While the move mirrors a similar pattern observed in early May, analysts caution that historical parallels do not guarantee identical outcomes. At that time, a sharp volume surge in spot markets, derivatives, and social activity coincided with a local peak in ETH prices, only to be followed by a consolidation phase before resuming upward momentum [1].

The current context suggests a mixed signals environment. On one hand, the ratio’s rapid contraction underscores immediate pressure on Ethereum. On the other, elevated trading volume and retail-driven impatience hint at potential follow-through demand. Santiment notes that such volume spikes often precede market resets, where short-term liquidations and profit-taking create openings for organic buying. If retail investors continue chasing dips amid growing frustration, Ethereum could retest critical support levels before pushing toward $4,000 [1]. This scenario hinges on the sustainability of current volume trends and the absence of broader macroeconomic headwinds.

Technical indicators further complicate the outlook. While the ETH/BTC ratio remains bearish in the short term, Ethereum’s price action shows resilience near the $3,685 support zone. A sustained rebound above this level could reignite bullish momentum, particularly if Bitcoin’s relative dominance weakens. Historical data reveals that such support levels often act as catalysts for secondary rallies, especially when retail participation intensifies. However, the market’s psychological shift is equally critical. As positions lighten and smart money begins accumulating long-term stakes, the balance of power between Bitcoin and Ethereum could realign [1].

Retail-driven dynamics are a key wildcard. Early profit-taking and fear of missing out (FOMO) have historically accelerated rebounds in crypto markets, even amid macroeconomic uncertainty. The current surge in social mentions and derivatives activity aligns with this pattern, suggesting that retail sentiment remains a potent force. However, the risk of premature exits persists, particularly if Bitcoin sustains its recent dominance or macro conditions deteriorate. Analysts emphasize that the next few days will be pivotal in determining whether this is a tactical correction or the start of a broader bearish phase [1].

While no outcome is guaranteed, the interplay of technical, behavioral, and liquidity factors suggests Ethereum remains in a strategic positioning phase. Traders are advised to monitor volume trends and sentiment shifts closely, as these metrics could serve as early signals for either a correction or a continuation of the bullish trajectory. For now, the 5.8% decline in the ETH/BTC ratio underscores the inherent volatility of the crypto market, without conclusively signaling a bearish or bullish inflection.

Source: [1] [ETH/BTC ratio falls by 5% – Should traders prepare for a dive or a rally soon?](https://ambcrypto.com/eth-btc-ratio-falls-by-5-should-traders-prepare-for-a-dive-or-a-rally-soon/)