Ethereum Extends Strength Against Bitcoin as ETH/BTC Jumps 25% in Two Months
Summary
- Ethereum’s ETH/BTC ratio has risen about 25% since its June 6 low, extending its stronger performance against Bitcoin.
- A golden cross has formed on ETH/BTC as the 50-day moving average crossed above the 200-day moving average, a signal often interpreted as pointing to a continued uptrend.
- Still, past golden cross signals on ETH/BTC have produced mixed results, with the pair sometimes surging sharply and at other times falling soon afterward, meaning the pattern is not a definitive guide to future moves.
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Ethereum has outperformed Bitcoin over the past two months, and a new technical signal suggests that relative strength could persist.
CoinDesk reported on August 24 that the ETH/BTC ratio, which measures Ether’s price relative to Bitcoin, has risen about 25% since bottoming on June 6. The move reflects Ethereum’s stronger gains versus Bitcoin since early June.
The ETH/BTC pair has also formed a so-called golden cross, with the 50-day moving average climbing above the 200-day moving average. The pattern indicates short-term price momentum has strengthened relative to the longer-term trend and is typically interpreted as a sign that an uptrend may continue.
A golden cross, however, does not guarantee further gains. Previous instances on the ETH/BTC chart have produced mixed outcomes.
After a golden cross on July 25 last year, ETH/BTC rose about 36% over the following four weeks before reversing into a steeper decline. In February 2021, the pair gained about 93% after a golden cross and climbed to 0.0824 by mid-May that year.
By contrast, golden crosses that appeared in May 2022 and August 2022 did not lead to gains, and ETH/BTC fell shortly afterward. CoinDesk said the pattern is a lagging indicator based on past price action, meaning it cannot be treated as a definitive signal of future moves.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.