ETH/BTC Volatility Hits Five-Year High as Ethereum Gains Momentum

Ethereum is showing signs of life against Bitcoin as ETH/BTC volatility spikes to levels not seen in five years

Written by: Sophia Cruz • Tuesday, June 17, 2025 • 2 min read

• Last updated: Tuesday, June 17, 2025

Quick overview

Ethereum's volatility against Bitcoin has surged to levels not seen in five years, indicating renewed interest among traders.
Factors such as the anticipation of a spot Ethereum ETF and a resurgence in decentralized finance (DeFi) activity are driving this volatility.
Despite previously lagging behind Bitcoin, Ethereum's fundamentals remain strong, suggesting potential for significant gains in the near future.
Market participants are closely monitoring the ETH/BTC pair, as its movements may signal broader shifts in the cryptocurrency landscape.

Ethereum is showing signs of life against Bitcoin as ETH/BTC volatility spikes to levels not seen in five years, according to recent market analysis.

Bybit and Block Scholes have revealed that the ETH/BTC volatility ratio has surged, suggesting that Ethereum is starting to catch up with Bitcoin’s dominant run.

The sharp increase in volatility points to a renewed interest in Ethereum, especially among traders who are betting on a near-term breakout. Analysts observe that the growing anticipation of a spot Ethereum ETF and the resurgence of decentralized finance (DeFi) activity are contributing to the movement.

For months, Ethereum lagged behind Bitcoin in terms of price performance. However, with macroeconomic pressures stabilizing and institutional sentiment improving, Ethereum appears ready to challenge Bitcoin’s dominance once again. The rising volatility doesn’t necessarily point to a downturn; instead, it signals potential upside as Ethereum prepares for more dynamic price action.

Market participants are closely watching the ETH/BTC pair, as changes in its trajectory often indicate broader shifts in the crypto landscape. Increased trading activity and growing leverage across derivatives platforms are also contributing to the market’s recent turbulence. Yet for long-term holders, this may be a welcome shake-up that sets the stage for future gains.

Ethereum’s fundamentals remain strong. Network upgrades, ecosystem development, and increasing stablecoin inflows continue to support its long-term value proposition. The recent divergence in volatility suggests that Ethereum may be entering a new phase of price discovery relative to Bitcoin.

The surge in volatility might also benefit traders looking for opportunities in pair trading or arbitrage, as ETH’s movement relative to BTC becomes more unpredictable. While short-term corrections are possible, the bigger narrative indicates growing investor confidence in Ethereum’s potential.

If current trends persist, Ethereum could be poised for significant gains in the months ahead. All eyes are now on whether this volatility will translate into real price momentum, helping Ethereum narrow the gap with Bitcoin and reinforce its position as a leading digital asset.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.