Ethereum News Today: Ethereum Breaks Multi-Year Downtrend Against Bitcoin

Ethereum's price has recently demonstrated a significant breakout against Bitcoin, signaling a potential structural shift in the crypto market. This development has been highlighted by technical analysts and on-chain data, which suggest that Ethereum (ETH) may be entering a new phase of relative strength compared to Bitcoin (BTC). The ETH/BTC ratio, long constrained by a multi-year downtrend, broke above key resistance levels in mid-2025, completing a falling wedge pattern often associated with bullish reversals [1].

The breakout was supported by on-chain indicators showing a decline in ETH held on centralized exchanges to under 4.9%, a level last seen during Bitcoin’s 2021 rally. This trend suggests accumulation by long-term holders or institutional investors, reducing the immediate supply available for trading [1]. Additionally, Ethereum-based ETFs reported five consecutive weeks of inflows by mid-2025, according to CoinShares, reinforcing the narrative of growing institutional interest in the asset [1].

Technical analysts have identified the $3,700 level as the next critical resistance area for ETH, with a successful breakout potentially leading to a target near $4,000. Should Ethereum maintain strength above its current support zone near $4,400, it may retarget the $4,600–$4,800 range. Sustained weakness below $4,400, however, could trigger a short-term pullback [4].

Ethereum’s relative performance against Bitcoin has also sparked speculation about a broader re-rating of altcoins. The USD/BTC pair has shown expanding volume and weekly closes above previous highs, reminiscent of Ethereum’s 2017 breakout. If bullish conditions persist, some analysts have drawn parallels to that period, with price targets as high as $15,000 for Ethereum [5].

Further reinforcing the bullish case, large whale activity has surged in recent days, with Ethereum whale addresses reportedly purchasing $279.5 million worth of ETH in 24 hours. Notable accumulators include entities like Bitmine, which holds nearly 1.174 million ETH—valued at over $5.26 billion. Such accumulation patterns are often seen as a sign of confidence in Ethereum’s long-term fundamentals [2].

Ethereum’s potential shift in dominance carries broader implications for the crypto ecosystem. As the leading platform for decentralized finance (DeFi) and smart contracts, a stronger ETH price could redirect developer activity and liquidity back to the network, reinforcing its role in shaping digital finance [1].

While the current trajectory appears favorable, analysts caution that volatility remains a risk. A failed retest of support or significant profit-taking could disrupt the momentum. The sustainability of Ethereum’s relative strength will depend largely on continued inflows and accumulation patterns. At press time, the ETH/BTC ratio remained above its long-term trendline for the first time in several years [1].

Structural factors—including ETF inflows, reduced exchange supply, and key resistance levels—will play a crucial role in determining whether Ethereum sustains its newfound position or reverts to previous ranges. The coming weeks may serve as a critical inflection point in the ongoing rivalry between Ethereum and Bitcoin.

Source:

[1] Ethereum News Today: Ethereum Breaks Key Resistance ... (https://www.ainvest.com/news/ethereum-news-today-ethereum-breaks-key-resistance-signals-8000-target-2026-2508/)

[2] Ethereum Whale Activity Surges: $280M Purchased In 24 ... (https://bitcoinist.com/ethereum-whale-activity-surges-280m-purchased-24/)

[3] Ethereum (ETH) Break Above 2021 ATH near $4.86K (https://blockchain.news/flashnews/ethereum-eth-break-above-2021-ath-near-4-86k-trader-rovercrc-says-altcoins-could-go-parabolic-watch-eth-btc-and-total3)

[5] Ethereum's Potential Breakout Above $4300 Could Echo ... (https://www.bitget.com/news/detail/12560604916610)

[6] Ethereum Stabilizes Above $4430, Eyes $5000 Threshold (https://www.ainvest.com/news/ethereum-news-today-ethereum-stabilizes-4-430-eyes-5-000-threshold-2508/)