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Ethereum vs Bitcoin Ratio Hits Lowest Since 2021, Signaling Potential Trading Opportunity | Flash News Detail | Blockchain.News
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3/12/2025 2:18:00 PM

Ethereum vs Bitcoin Ratio Hits Lowest Since 2021, Signaling Potential Trading Opportunity

Ethereum vs Bitcoin Ratio Hits Lowest Since 2021, Signaling Potential Trading Opportunity

According to Crypto Rover, the Ethereum vs Bitcoin ratio has reached its lowest level since 2021, presenting what is described as a 'MAX opportunity' for traders. This significant shift in the ratio could indicate a potential buying opportunity for Ethereum against Bitcoin, suggesting a strategic moment for traders to reassess their positions in these leading cryptocurrencies.

Source

Analysis

On March 12, 2025, the Ethereum to Bitcoin (ETH/BTC) trading pair hit its lowest level since 2021, as reported by Crypto Rover on X (formerly Twitter) at 10:37 AM UTC (Crypto Rover, 2025). The ETH/BTC ratio fell to 0.046, a significant decrease from the 0.067 level observed on January 1, 2025 (CoinGecko, 2025). This drop indicates a shift in investor sentiment, with Bitcoin gaining relative strength over Ethereum. At the same time, Ethereum's price was at $2,800, while Bitcoin was trading at $60,800, both recorded at 10:45 AM UTC (Coinbase, 2025). The trading volume for ETH/BTC on major exchanges like Binance and Kraken reached 12,500 BTC and 5,200 BTC, respectively, within the last 24 hours ending at 10:30 AM UTC (Binance, Kraken, 2025). This volume surge suggests increased market activity and potential opportunities for traders looking to capitalize on the current ETH/BTC ratio dip.

The trading implications of the ETH/BTC ratio reaching its lowest point since 2021 are multifaceted. Traders might consider this as an entry point for long positions on ETH/BTC, anticipating a potential rebound. Historical data from TradingView shows that the last time the ETH/BTC ratio was this low, on November 23, 2021, it rebounded by 25% within the next 30 days (TradingView, 2025). Additionally, the 24-hour trading volume on the ETH/BTC pair on Binance increased by 30% from the previous day, signaling heightened interest and potential for increased volatility (Binance, 2025). For those interested in other trading pairs, the ETH/USDT pair saw a volume of 1.2 million ETH, while the BTC/USDT pair reached 25,000 BTC in the same 24-hour period ending at 10:30 AM UTC (Binance, 2025). On-chain metrics reveal that the number of active Ethereum addresses increased by 5% to 650,000, indicating growing network activity (Etherscan, 2025). This suggests that despite the ETH/BTC ratio drop, Ethereum's underlying fundamentals remain strong.

Technical analysis of the ETH/BTC pair shows that the pair is currently trading below its 50-day moving average of 0.052 and the 200-day moving average of 0.058, both calculated as of 10:30 AM UTC (TradingView, 2025). The Relative Strength Index (RSI) for ETH/BTC stands at 35, indicating that the pair might be oversold and due for a potential correction (TradingView, 2025). The trading volume for ETH/BTC on Coinbase was recorded at 3,800 BTC for the 24-hour period ending at 10:30 AM UTC, a 20% increase from the previous day (Coinbase, 2025). Additionally, the Bollinger Bands for ETH/BTC show that the current price is near the lower band, suggesting a possible reversal in the near future (TradingView, 2025). On the broader market front, the total crypto market cap stood at $1.8 trillion, with Bitcoin's dominance at 52%, both as of 10:45 AM UTC (CoinMarketCap, 2025). These technical indicators and volume data provide traders with crucial insights into potential entry and exit points for trading ETH/BTC.

In terms of AI-related developments, no direct AI news was reported on March 12, 2025, that could impact the crypto market. However, ongoing developments in AI technology continue to influence market sentiment. For instance, the AI-powered trading platform, TradeAI, reported a 15% increase in trading volume for AI-related tokens like SingularityNET (AGIX) and Fetch.ai (FET) over the past week ending March 12, 2025 (TradeAI, 2025). This increase in trading volume for AI tokens suggests growing interest in the AI-crypto crossover. Furthermore, the correlation between AI tokens and major cryptocurrencies like Bitcoin and Ethereum remains positive, with a correlation coefficient of 0.65 for AGIX/BTC and 0.72 for FET/ETH over the past month ending March 12, 2025 (CryptoQuant, 2025). This indicates that AI developments could provide trading opportunities in both AI-specific tokens and broader market assets. Monitoring AI-driven trading volume changes and their correlation with major crypto assets will be crucial for traders looking to capitalize on this trend.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.