ETHBTC Approaching a Key Decision Zone

Since September 2022, ETHBTC has been in a persistent downtrend as macroeconomic conditions and US interest rate policies favored Bitcoin accumulation over Ethereum. Multiple attempts to break the descending trendline have failed, reflecting limited capital rotation into ETH while BTC remained the dominant asset. The situation began shifting after ETHBTC marked a bottom around April 24, 2025, followed by steady upward movement. This recovery has now brought the pair toward the important resistance region near 0.0378, where price is struggling to break the downtrend line.

If ETHBTC clears both the diagonal and horizontal resistance levels, particularly the 0.04 mark, the pair could see a strong upside continuation driven by renewed momentum. However, recent signals from the FOMC and visible ETF outflows from ETH holdings, alongside fading Bitcoin demand, create uncertainty about immediate bullish continuation. On the downside, if resistance holds, price may revisit the Fibonacci 0.618 retracement zone near 0.02648, often considered a golden pocket that could provide a strong base for the next leg higher.

At present, ETHBTC is in a decisive area where traders should wait for confirmation. A breakout above 0.04 opens the path for bullish momentum, while a correction toward 0.02648 could offer another accumulation opportunity. Until either scenario is confirmed, maintaining patience and avoiding premature entries may be the more prudent approach.