Ethereum Staking Rate Hits Record High, but ETH/BTC Faces 10% Downside Risk
Ethereum uses a proof-of-stake mechanism, allowing holders to stake ETH with network validators in return for rewards. A higher staking rate removes more tokens from circulation and helps tighten market supply. However, Ethereum’s price performance relative to Bitcoin still depends on capital flows and technical trends.
Ethereum’s staking rate recently climbed to a record 32.33%. Technical analysis, however, indicates that ETH/BTC has formed a bear flag. Analysts estimate that the pair could fall about 10% in May toward 0.026 BTC, suggesting that tighter supply has yet to translate into relative strength.
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The history behind this eventEthereum Falls 35% Against Bitcoin in a Year as Technical Analysis Flags Another 40% Drop
Ethereum is the second-largest crypto asset by market capitalization after Bitcoin, and the ETH/BTC ratio is commonly used to gauge investor preference between the two blockchain ecosystems. Ether has depreciated by more than 35% against Bitcoin over the past year, indicating that capital has become more concentrated in Bitcoin and weakening expectations for a period of relative Ethereum strength.
The ETH/BTC ratio recently fell to a nearly 10-month low and remains capped by a long-term descending trendline. Analysts said Binance’s Ether reserves continue to rise, potentially signaling increased selling pressure. If the 2025 bear-market pattern repeats, ETH could initially fall 20% in the short term, while an extreme technical scenario points to a possible further decline of 40%.
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