The ETH/BTC ratio drops to a historical level: should you worry?

The Crypto market is going through a major transition phase. The ETH/BTC ratio has just reached its lowest level in five years, raising a crucial question: should we turn away from Ethereum in favor of more efficient altcoins? While Bitcoin still dominates the market, some analysts believe that an Altcoin Season could be looming on the horizon. Others, on the contrary, think that BTC supremacy could last longer than expected.

The ETH/BTC ratio at the bottom: a disturbing historical signal?

Ethereum, which had to surpass the BTC since January 2025, have been in difficulty for several months. Indeed, the ETH/BTC ratio fell to 0.022, a level never seen since 2020. Historically, this type of fall preceded strong increases for Ethereum and Altcoins, as in 2021, where ETH had jumped 1,650% in a year. However, the current situation differs from previous cycles.

Indeed, Bitcoin massively attracts institutional capital, while Ethereum faces structural challenges: slower institutional adoption, still high transaction costs and increased competition of alternative blockchains like Solana or Avalanche. As a result, as long as Bitcoin dominates the market, Ethereum could continue to suffer, believe certain experts.

Bitcoin in force: a delayed altseason?

Traditionally, when Bitcoin reaches a summit, part of the capital moves to altcoins, launching an altseason. But this time, the indicators show that the BTC retains an overwhelming position. His domination, which was 61.2 % yesterday, is 62.15 % today, still strengthening his supremacy, a level that had not been observed for a long time.

The Altcoin Season index of CoinmarketCap displays only 13/100, which means that less than 13% of the 100 main altcoins outperform bitcoin over the last 90 days. Consequently, some analysts, such as Hansolar, believe that the domination of Bitcoin could last all year round, making any altseason uncertain.

However, others consider that the market could soon turn around. For them, such a low eth/BTC is often the prelude to a reversalencouraging investors to reassess the undervaluation of Ethereum.

Can Ethereum bounce?

Despite this down pressure, Ethereum did not say his last word. Historically, the moments when ETH/BTC was at the bottom have always preceded bullish reversals. However, several conditions must be met so that Ethereum returns to the field:

• an increase in institutional adoption and volumes on ETH;

• technological improvements, in particular via the deployment of the optimization of costs and scaling;

• An influx of liquidity towards altcoins, signaling a cycle change.

For investors, the key question is therefore timing. Should we wait for an Ethereum rebound, or favor other altcoins now? The answer will depend on market behavior in the coming weeks. If Bitcoin continues its climb tirelessly, Ethereum could stay under pressure for a long time. But if history is repeated, an altseason could well emerge where it is expected.