A key crypto market indicator is signaling a continued tilt toward caution, as investors remain more comfortable holding bitcoin than ether.

The ether-to-bitcoin (ETH/BTC) ratio, widely used to track relative performance between the two largest cryptocurrencies, fell to 0.02835 on Tuesday. That marks a 10-month low and its weakest level since July 2025.

The decline highlights ether’s ongoing underperformance. ETH dropped more than 2% during the session, while bitcoin eased by just over 1%. From its August high of 0.04324, the ETH/BTC ratio has now fallen more than 35%, underscoring a sustained shift in market leadership toward bitcoin.

Traders often view the ETH/BTC ratio as a barometer of crypto risk appetite. A rising ratio typically reflects stronger demand for higher-risk assets like ether and broader altcoins, while a falling ratio suggests a preference for bitcoin’s relative stability and defensive characteristics.

The ratio last peaked above 0.08 in December 2021 before entering a prolonged multi-year downtrend. Much of the weakness through 2024 and into 2025 has been attributed to bitcoin’s continued outperformance following the launch of U.S. spot bitcoin ETFs in January 2024, which drew significant institutional inflows.

The pair later bottomed at 0.01770 in April 2025 during heightened volatility surrounding President Trump’s “Liberation Day” tariff announcements. It subsequently rebounded sharply, rallying around 135% through later 2025, before reversing course again. Despite that recovery, the ratio has since slipped roughly 35% from its recent peak.

From a technical perspective, the ETH/BTC ratio remains well below its 200-week moving average of 0.04828, reinforcing the view that ether continues to lag bitcoin in a broader long-term downtrend.