Ethereum (ETH) Hits 3-Month High Against Bitcoin

Ethereum News

Ethereum (ETH) has risen to a three-month high against Bitcoin, reviving a closely watched signal for Ethereum leadership. The ETH/BTC pair measures capital preference between the two largest assets, and its latest advance shows ETH outperforming after a long stretch of weakness. On-chain analytics platforms tracked the move after the ratio fell roughly 80% between 2021 and 2025, a period that tested patience among holders of the leading altcoin. Traders often read relative strength as an early marker of broader risk appetite, because ETH gains versus BTC can precede rotation into smaller tokens. The key question is whether the cross can hold its breakout.

A separate on-chain indicator has also turned positive, adding to the technical conversation around Ethereum. Analyst Ali Martinez said the MVRV Golden Cross has formed, a signal comparing market value with realized value and often used to identify shifts in holder profitability. The historical framework shared with the signal shows the previous four ETH episodes produced gains of 50%, 166%, 74% and 113%. Those moves spanned different phases, including recovery from bear-market conditions and renewed debate over a possible move toward Ethereum's all-time high. Past performance does not guarantee a repeat, but the pattern strengthens the improving risk-reward argument.

Ethereum's price action confirmed the improving tone on July 27, when ETH climbed 4.5% and touched $1,980 on Bitstamp, putting the asset within reach of the $2,000 level. The move erased losses from the prior week and lifted Ethereum's market value to about $237 billion. Derivatives data showed the rally was painful for bears, with $113 million in ETH short positions liquidated over 24 hours, while long liquidations were only about $10 million. Spot ETH exchange-traded funds also helped, taking in nearly $104 million from July 20 to July 24. That combination of ETF demand and forced covering gave the advance a clear catalyst.

The rally also aligned with a shift in macro risk after U.S. officials confirmed a pause in airstrikes on Iran to allow more room for diplomacy. Brent crude fell about 9% from its recent high, easing one inflation worry that had pressured risk assets. Ethereum recovered above $1,950 as the geopolitical headline hit, and derivatives markets reacted quickly. Over 24 hours, more than $91.6 million in leveraged ETH positions were liquidated, with shorts accounting for $86.1 million, or over 94% of the total. More than $56 million of those short losses occurred within four hours of the de-escalation confirmation, underscoring a classic squeeze.

Structural news also supported Ethereum's case after Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank. Because Circle's USDC stablecoin uses Ethereum as a primary settlement layer, federal oversight of the issuer reduces one source of regulatory uncertainty for institutions using the network. Analysts framed the decision as a liquidity and adoption positive, particularly for Ethereum's decentralized finance ecosystem, where automated market maker protocols and lending markets rely heavily on stablecoin collateral. A clearer regulatory perimeter may encourage enterprise-grade participation, although the immediate price impact remains difficult to isolate from broader market strength.

Network-level data added another constructive signal, as Ethereum's validator exit queue cleared, leaving no validators waiting to withdraw staked ETH. The exit queue is a bottleneck that can delay movement between staking and liquid supply, so an empty queue suggests the proof-of-stake system is processing entries and exits without friction. That matters for institutional allocators because it improves confidence that staked positions can be redeployed quickly if market conditions change. On-chain data also showed newer wallets withdrawing more than 20,000 ETH from exchanges, while one long-term holder remained underwater on 9,389 ETH bought near $4,311. Together, the flows point to active repositioning rather than passive exit.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates Ethereum's nearest resistance at $1,964.72 as 61/100, driven by Fibo 0.500 and Donchian Upper, while the $1,860.15 support scores 82/100 from HVN and EMA 50. With spot at $1,929.75, RSI at 60.11 and a bullish MACD, the structure favours a test of $1,964.72, then $2,063.38, also scored 61/100 via POC and Fibo 0.618. Derivatives show 0.0036% funding, $8.18 billion open interest and a 1.53 long-short account ratio, indicating moderate long bias without excessive froth. Fear and Greed at 30/100 leaves contrarian upside room. A daily close below $1,860.15 would weaken the uptrend thesis.