Ethereum News Today: Ethereum Price Ratio Crosses 365-Day Average Signaling Bullish Cycle

Ethereum appears to be on the verge of a significant bullish run, as the ETH/BTC price ratio recently crossed above its 365-day moving average, a historically notable indicator of Ethereum outperformance against Bitcoin [1]. This crossover, highlighted by @cryptoquant_com on August 14, 2025, suggests the beginning of a new bullish cycle, reminiscent of past surges such as the over 500% rally seen in 2017–2018. The ratio’s movement signals increased demand for Ethereum relative to Bitcoin, reinforcing the narrative of Ethereum gaining ground as a leading smart contract platform [1].

The recent technical development coincides with growing institutional confidence in Ethereum. BlackRock reportedly purchased $500 million worth of ETH in August 2025, according to Arkham data [1]. This move reflects a broader shift in institutional sentiment, with Ethereum increasingly viewed as a strategic asset complementing Bitcoin rather than being overshadowed by it. On-chain metrics also support this trend, with Ethereum’s exchange-held supply reaching a nine-year low at 15.28 million tokens, as reported by Glassnode [1].

Meanwhile, Ethereum’s decentralized finance (DeFi) ecosystem continues to expand, with total value locked (TVL) now surpassing $90 billion [1]. This growth in TVL not only highlights the platform’s utility but also underscores its role as a foundational layer for innovation in the crypto space. Analysts have pointed out that Ethereum’s versatility—rooted in its robust smart contract infrastructure—positions it to benefit from the ongoing altcoin season, especially as market dynamics shift in favor of non-Bitcoin assets [1].

Despite the optimism, the market remains cautious. While historical patterns and technical signals point to potential upside, the volatility inherent to the crypto market means that risks persist. According to the Journal of Risk and Financial Management (2023), altcoin outperformance often follows Bitcoin’s dominance peaks but is typically accompanied by heightened volatility [1]. At the time of writing, Ethereum was trading near $4,570, still 15% below its all-time high of $4,700. Analysts like Standard Chartered have forecast a potential rise to $7,500 by year-end [1], though such predictions are subject to market conditions and should be treated as indicative rather than definitive.

The current ETH/BTC ratio crossover and Ethereum’s broader market fundamentals—backed by growing institutional adoption and DeFi expansion—suggest that the asset may be entering a period of sustained strength. However, investors are advised to monitor both on-chain activity and broader macroeconomic factors, as Ethereum’s next move could set the tone for the wider crypto market in the coming months [1].

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[1] https://coinmarketcap.com/community/articles/689ef707ddbd4b3a5f793d62/