It is no secret that Ethereum’s performance has been tame compared to bitcoin Since the beginning of this cycle. However, this trend became most obvious at the beginning of the year when ETH’s price fell against the $ 3000 brand while BTC continued to move sideways over $ 100,000.
When the Bitcoin price eventually dropped the level of $ 100,000 during the first quarter, the value of Ethereum had already dropped close to $ 2,000. While the main Cryptocurrency has reached a new highest time in recent days, “King of Altcoins” is facing a significant resistance of about $ 2,800.
Will Divergens lead to re -evaluation of investment strategies?
The kit for both assets’ price increase in recent weeks and months provides an insight into the declining relationship between Bitcoin and Ethereum. In a recent Quicktake post on the Cryptoquant platform, the analyst on the chain Carmelo Aleman shared that a decoupling has occurred between the world’s two largest crypto courses.
Aleman defined correlation in his post:
Correlation is a statistical measure of the relationship between two variables. In economic analysis, it helps to determine whether two assets tend to move in the same direction (positive correlation), in opposite directions (negative correlation) or independence (near zero).
Historically, Bitcoin and Ethereum have always maintained a strong positive correlation – usually over 0.7. This long -term trend explains why most of BTC’s movements were often reflected by the price of Ethereum in recent years.
Source: CryptoQuant
Aleman, however, noted that a decoupling has occurred between the two best assets since the beginning of this year. Data from the BTC-Als-correlation matrix (annually) shows that the correlation was 0.63 on January 1, 2025 before falling to 0.05 no later than 22 May 2025.
Source: CryptoQuant
From one Investment perspectiveThis large divergence breaks one of the crypto market’s most consistent patterns, leading to a re-evaluation of strategies based on Bitcoin-Etheum correlation. “It also adds uncertainty for investors, who can no longer expect ETH to follow BTC,” added Aleman.
The analyst on the chain said:
Portfolio models, risk strategies and return forecasts must now adapt. This can also reflect how Ethereum is driven by its own internal factors – such as protocol upgrades, regulation or defi – which gains growing independence.
Aleman also mentioned that this shift means that ether and related assets have an increased risk of missing the bull markets. This effect is largely seen in 2025 where the Bitcoin price has climbed, while Eth And other Ethereum-related altcoins have often stopped or decreased.
Bitcoin and Ethereum Price
From this writing, Bitcoin and Ethereum are valued at approximately $ 107,450 and $ 2 507 respectively. While the BTC price climbed by more than 5% over the past week, ETH’s value is up with less than half of that during the same period.
The price of BTC against ETH on the daily timeframe | Source: BTCETH chart on TradingView
Image from iStock, chart from tradingview
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