Key Takeaways:
Ether's ratio against Bitcoin reclaimed the 0.03 level, opening a path toward 0.035.
ETH/BTC rose above 0.03 on July 22, reclaiming a level that has capped the pair since mid-June, as momentum shifts in favor of altcoins.
"The 0.03 level has acted as both resistance and support multiple times since May, and a daily close above it confirms buyers are regaining control," Jason Wu, on-chain analyst at Edgen, said.
The pair traded at 0.0302 as of 08:30 UTC, up 3.4% from last week's low of 0.0292. Open interest on ETH perpetuals across Binance and Bybit rose 12% to $4.8 billion over the past 24 hours, Coinglass data shows, while funding rates turned positive for the first time in five days — suggesting longs are re-entering with conviction.
A sustained break above 0.03 opens the 0.032–0.035 range, a zone not tested since April. If ETH/BTC clears 0.035, it would mark the pair's highest level since March and could trigger a broader capital rotation from Bitcoin into Ethereum and the altcoin ecosystem, historically a precursor to alt-season rallies.
The move comes as Ethereum's on-chain activity shows signs of revival. Daily active addresses on Ethereum rose to 485,000 on July 21, the highest in three weeks, according to Dune Analytics. Total value locked across Ethereum DeFi protocols held steady at $42.3 billion, DefiLlama data shows, with Lido Finance accounting for $23.8 billion of that sum.
Bitcoin's dominance, which measures BTC's share of total crypto market capitalization, slipped to 54.2% from a July high of 55.8%, CoinGecko data shows. A declining dominance rate typically accompanies altcoin outperformance, and the ETH/BTC pair is the most watched proxy for that rotation.
The 0.03 level has been a technical battleground since May. The pair tested it four times in June, closing below it on each occasion before finally breaking through on July 21. The Relative Strength Index on the daily chart sits at 56, leaving room for further upside before entering overbought territory above 70.
On the downside, the 0.03 level now flips to support. A daily close below it would invalidate the breakout and expose the 0.028 zone, where the pair found buying interest in late June.
The broader macro backdrop is supportive. Bitcoin has gained 2.5% this week to trade near $66,300, while Ethereum has climbed toward $1,937, approaching its 100-day exponential moving average. A decisive close above that level for ETH would add momentum to the ETH/BTC breakout narrative.
This article is for informational purposes only and does not constitute investment advice.
