ETH/BTC Ratio Jumps 38%—Is This the Start of Alt Season?

Key Insights:

• ETH/BTC ratio rebounds 38% from 5-year low, signaling renewed investor confidence.
• Pectra upgrade enhances Ethereum staking, wallet features, and institutional access.
• Ethereum gas fees hit a record low of $0.09, boosting usage and transaction volume.

The value of Ethereum against Bitcoin has increased by 38% since reaching a five-year low, thanks to ETF staking, the Pectra update and growing on-chain accumulation. The low transaction fees and positive sentiment make Ethereum a good candidate to lead a change in the crypto market.

ETH/BTC Hits 5-Year Low, Then Surges

Ethereum has seen a significant increase against Bitcoin. The ETH/BTC ratio increased by 38% after reaching a five-year low, as reported by CryptoQuant.

Following a period of poor performance since early 2022, the company made this move. ETH dropped to 0.05 BTC recently, a level not seen since late 2019, but it has since bounced back.

The market has hit three previous bottoms in 2019 and 2020 that followed a similar trend. Following each of these events, Ethereum’s price went up compared to Bitcoin.

These bottoms are marked with a green arrow in the chart. In May 2025, another instance of the same signal was detected.

The change might indicate that Bitcoin’s influence is decreasing. When Bitcoin’s share of the market declines, investors often move their funds to altcoins. If the pattern repeats, Ethereum could push other tokens to rise as well.

On-Chain and Sentiment Indicators Show Rising Interest

There are signs that demand for Ethereum is increasing. CryptoQuant’s chart reveals that ETH inflows have reached a record high since 2017. As a result, it is clear that large investors, known as whales, are actively purchasing ETH.

Social sentiment also supports this. Based on a dashboard by Kaito, there has been a significant increase in Ethereum-related mentions and engagements starting in late April.

On May 9, there was a significant increase in mindshare and engagement went up by more than 15%. The value of ETH rose from about $1,600 to more than $2,500 during this period.

The fact that transaction fees are at an all-time low is another reason. A tweet from a market analyst revealed that ETH gas fees were as low as $0.09 for the first time. Because of this, DeFi and NFT activities can increase and become more affordable for users.

Ethereum’s Technical Picture Is Reversing

Ethereum could be moving into a new stage in its development. A Titan of Crypto chart from this week indicates that the token is once again in a long-term range. Since the start of 2021, the price of bitcoin has stayed within a range of $2,000 to $4,000.

The MACD indicator is indicating a bullish crossover. Often, this pattern marks the point where the downtrend ends. With Ethereum returning to its previous range, this crossover could suggest that prices might rise.

Pectra Upgrade and ETF Developments Drive Interest

The shift in price and mood for Ethereum occurred after the Pectra upgrade which was launched on May 7. This is one of the most significant updates for Ethereum since the Merge in 2022. It brings several updates that enhance both using the platform and the staking process.

With EIP-7702, Ethereum wallets have the ability to act as smart wallets. It makes it possible to combine transactions and let others pay for gas costs. EIP-7251 increases the maximum amount of ETH validators can stake to 2048 ETH and EIP-7002 introduces programmable exits.

Staking efficiency has improved too. Lido, a liquid staking platform, now has more value locked than Aave, the most popular lending protocol. The data indicates that Ethereum is gaining popularity among institutions.

ETF filers also have the option to include staking in their filings. If the proposal is accepted, Ethereum would be the first ETF to offer native yield. This would be the first crypto ETF which could lead to more investors putting money into ETH.

Macro trends are also helping to drive this change. A drop in the U.S. Dollar Index and better U.S.-China ties have encouraged investment in risky assets. The recent surge in Bitcoin has put the crypto market back in the spotlight. With Bitcoin’s dominance decreasing, Ethereum is now attracting the attention of traders and institutions.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.