Ethereum Outperforms Bitcoin as ETH/BTC Hits 0.04, Eyes $5.7K
Ethereum (ETH) surged 18.8% in August while Bitcoin (BTC) slid 6.5%, marking the strongest monthly divergence in years. The ETH/BTC ratio jumped over 27% to reclaim the 0.04 resistance level, driven by smart money rotation and robust on-chain flows and derivatives positioning. Analysts note that previous divergences in January, April and June saw ETH underperform BTC, but August’s breakout suggests a structural shift in market dynamics.
If this momentum continues into September, a scenario where BTC gains 10% could propel ETH toward $5,700, yielding three times relative outperformance. Traders should monitor the ETH/BTC ratio support, derivatives inflows and accumulation metrics for short-term opportunities, while long-term investors view sustained liquidity rotation and ratio stability as confirmation of Ethereum’s growing market strength.
Bullish
The strong divergence, with ETH outperforming BTC by over 25% and reclaiming the 0.04 ratio, indicates renewed buying pressure on Ethereum. On-chain flows and derivatives metrics support further upside, while a potential 10% gain in Bitcoin could push ETH toward $5,700, suggesting outsized returns. Short-term traders are likely to chase this momentum via ETH/BTC ratio breakouts and liquidity rotation, fueling near-term bullish price action. In the long term, sustained smart money rotation and structural shifts in market dynamics reinforce Ethereum’s strengthening position, underpinning continued upward pressure on ETH.