Ethereum ends 2-year decline against Bitcoin as ETF inflows return

Ethereum's prolonged decline against Bitcoin has come to an end. The ETH/BTC pair broke above a multi-year downtrend line on July 25, signaling a potential regime shift in the largest crypto trade of the cycle.

"The ETH/BTC pair breaking its downtrend is a structural signal that capital rotation may be underway," Jason Wu, on-chain analyst at Edgen, said. "We're seeing ETF flows confirm what the chart is showing."

US spot Ethereum ETFs recorded $487 million in net inflows over the past five trading sessions through July 24, according to data from CoinShares, reversing a streak of outflows that had persisted since early June. The inflows coincide with Ethereum's relative strength index on the weekly chart exiting oversold territory for the first time since September 2024.

The rotation matters because Ethereum holds a structural advantage that Bitcoin cannot replicate. Tokenized real-world assets on Ethereum total $18.2 billion, representing 72 percent of the entire market across all blockchains, according to data from rwa.xyz. BlackRock's BUIDL fund alone accounts for $1.8 billion of that total, all on Ethereum. As traditional finance moves assets on-chain, Ethereum captures the overwhelming share of that activity.

The next test for ETH/BTC comes at the 0.048 resistance level, a zone that has capped rallies three times since March 2025. A weekly close above that level would open the path toward 0.055, according to Wu. On the downside, the breakout level near 0.042 now serves as support.

Ethereum traded at $3,847.12 as of 14:30 UTC, up 6.2 percent in the past 24 hours, while Bitcoin traded at $80,148, up 1.8 percent over the same period, according to CoinGecko data.

This article is for informational purposes only and does not constitute investment advice.