The ETH/BTC pair has broken a multimonth downtrend and reached a 70-day high, while the ETH/USDT pair has broken a 9-month-long downtrend. These two events coincide at a time when the scarcity index of ETH on Binance has tanked to its lowest since May 2025. As the scarcity drops, fear takes over the market, and the question, “Will ETH lose the ground it gained?” begins to rise.
ETH/BTC ratio hit 70-day high, breaking a multi-month downtrend
The ETH/BTC ratio climbed to a 70-day high after breaking above a multi-month descending trendline and diagonal resistance, marking its highest level since rebounding from a 455-day low.
Meanwhile, Ether held above the $1,750 support, reclaimed the $1,820 range, and advanced toward $1,900, outperforming Bitcoin. The move points to capital rotating into Ether, with traders shifting exposure to the second-largest cryptocurrency amid improving technical momentum.
Bitcoin dominance reaches new equilibrium
In the meantime, the Bitcoin dominance has been muted for the past few weeks, as the Bitcoin dominance chart has been consolidating. A consolidating BTC dominance chart shows that the market has reached a new equilibrium at 58%, which is quite a bit less compared to the earlier gradient the dominance chart showed.
ETH/USDT chart breaks 9-month downtrend
When the ETH/BTC pair breaks a multimonth downtrend, the ETH/USDT chart has also broken a 9-month-long downtrend. After breaking this downtrend, the pair is currently testing the 50-day moving average, which is a positive development.
The 50-day moving average often acts as a dynamic resistance during downtrends, so reclaiming it suggests that selling pressure is weakening and could encourage additional buying from traders and institutions. It also increases the probability of a move toward the 100-day and 200-day moving averages, reinforcing the case for a broader trend reversal.
Although the prices have made commanding moves, ETH has lost a major bullish signal according to an analyst. The $ETH Scarcity Index on the Binance exchange has fallen to its lowest level since mid-2025.
The decline in Binance’s ETH Scarcity Index suggests Ether has become more readily available on the exchange, indicating an increase in tradable supply. Lower scarcity typically eases the supply squeeze that can support prices, although the impact depends on whether the inflows are intended for selling or for liquidity provision by large market participants. With such context, there is an arising thought that ETH might lose all the ground it gained.
