Ethereum-Bitcoin Ratio Breaks Downtrend Amid CLARITY Act Hopes
The Ethereum-Bitcoin ratio has broken out of a year-long downtrend, according to Tom Lee, co-founder of Fundstrat. This breakout is seen as a signal of a revival in crypto, but it's not yet confirmed until ETH/BTC holds the breakout and clears the next resistance level at 0.0316.
The ratio had been steadily grinding lower inside a descending channel since August 2025, with every bounce getting sold. However, in July 2026, the pair closed above the channel and traded near 0.0289, marking a significant move.
Lee's argument isn't just based on chart-watching, but also on Ethereum's dominance in stablecoins, tokenized real-world assets, and DeFi activity. The stablecoin market cap was at $305.1 billion at the end of June 2026, with USDT and USDC making up about 83% of the market.
The CLARITY Act, which aims to separate digital commodities like Bitcoin and Ethereum from tokens treated as securities, has put a date on the market's impatience. If passed, this bill could have a significant impact on institutions' adoption of crypto.