Key takeaways:
- ETH/BTC ratio has broken above the resistance level, signalling a potential breakout.
- Bitmine’s Tom Lee says the rise signals a revival of crypto.
- Despite Tom Lee’s optimism, various whales are actively shorting the ETH/BTC pair.
- The overall market analysis suggests a breakout for ETH/BTC
Tom Lee, CIO of Fundstrat Capital and the chairman of Bitmine, has been tracking the ETH/BTC ratio for a while, and he signalled a potential rise for it in the second half of 2026. ETH has broken above the resistance level, and various traders consider it the beginning of a breakout. ETH/BTC is now at 0.02838, a % increase this week.
Tom Lee Says ETH/BTC Breakout Will Revive Crypto
Tom Lee’s BitMine continues to add ETH to his BitMine Immersion Technologies (NYSE: BMNR), an Ethereum-focused digital asset treasury, with the expectation of a breakout. “Keep an eye on $ETH / $BTC ratio. Signal of a revival of crypto,” he recently tweeted on X (Twitter).
According to Tom Lee and Bitmine, ETH/BTC price will rise due to the oil price decline that lowers the inflation rate, the growth of the stablecoin sector and tokenization, and legislative support such as the passing of the GENIUS Act. In addition, smart-contract-based cryptocurrencies such as Ethereum are considered by many as an extension of the AI narrative.
ETH/BTC Breakout Soon? In-Depth Analysis
At present, the ratio is at 0.02838, which means that 1 ETH can be bought with 0.02838 BTC. Following the COVID-19 crisis, the ratio witnessed a surge, reaching 0.08130 in November 2021. The growth was primarily due to the explosive growth of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs).
However, ETH/BTC plunged to 0.01905 in April 2025, one of the hardest falls in recent times. It was due to huge whale sell-offs triggered by the shift of institutional investors to Bitcoin. Additionally, declining network activity and macroeconomic factors affected the downtrend. While there is an uptrend in recent times, various catalysts are needed for a huge breakout.
Hegota and Glamsterdam Upgrade
The Hegota upgrade to improve censorship resistance and the Glamsterdam upgrade that aims to scale the base layer are scheduled for the second half of 2026. These upgrades are expected to increase network activity and bring more institutional investors.
Quantum Resistance
While not an immediate action, the Ethereum network plans to update the blockchain into a quantum-resistant system. The Post-Quantum Cryptography (PQC) has already begun, and we will likely see the full upgrade by 2029. According to various experts, quantum technology can emerge in the future as a tool to hack private keys from exposed public keys, especially from a basic blockchain like Bitcoin.
Mainstream Adoption
Ethereum has been used by various governments and institutional entities across the globe because of its neutral and decentralized digital public infrastructure that eliminates the risk of intermediaries. But it still needs a push to become a primary tool used by all governments and similar organizations.
The Bottom Line: Will Ethereum Underperform Bitcoin?
Despite the optimism surrounding the upgrades and the network activity, various traders are still skeptical about ETH overpowering BTC. Recently, a whale who has a track record of trading the ETH/BTC pair in profit has created a short position on Ethereum. While the whale expects Ethereum to underperform Bitcoin, the current market scenario is favoring ETH.
ETH/BTC is showing a breakout signal in the charts, which is similar to the moment before the 2021 uptrend. However, as a highly volatile market that witnesses recurring ups and downs within a short period of time, the charts could take unexpected turns.
Also Read: Inside Eric Trump’s $600 Million Bitcoin Stake Decline and What Triggered It