Ethereum faced a sharp pullback Wednesday as former President Donald Trumps tariff comments rattled risk markets.

In a press briefing, Trump said hed only ease tariffs if foreign markets opened wider to U.S. goodsa hardline stance that sent shockwaves across global assets.

Ethereum reacted fast. The price slipped below $3,600, falling to $3,590its lowest in days, according to CoinMarketCap.

But beneath the surface, a deeper shift is underway.

At the same time ETH/USD slid, the ETH/BTC ratio quietly hit its highest level in weeksclimbing above 0.031, up from 0.022 just a month ago. Thats a 40%+ move in 30 days, underscoring Ethereums strength relative to Bitcoin.

The Dual Drivers for Ethereum: Institutions and ETFs

This relative ETH strength isnt a fluke. Two forces are fueling it:

  1. Institutional buying: Funds and large players continue locking in Ethereum positions.
  2. ETF inflows: July has seen record weekly inflows into Ethereum-based exchange-traded funds. Assets under management are swelling, signaling surging investor appetite.

Smart contract usage, DeFi traction, and staking demand all add tailwinds. Confidence is rebuildingand the ETH/BTC ratio tells that story clearly.

Since its five-year low near 0.018 in Aprilmatching March 2020 crash levelsthe ETH/BTC ratio has now rebounded more than 70%. Bulls point to the 0.02 level as a new long-term support floor.

Altseason Rumblings Grow

As Ethereum gains ground on Bitcoin, traders are beginning to whisper the A word againaltseason.

Historically, when ETH outperforms BTC, smaller-cap coins tend to follow. Decentralized exchange volumes have ticked higher. Open interest in ETH perpetuals has surged. Funding rates have flipped positive on major platforms.

Even with todays dip, Ethereums fundamentals remain firm:

  • Daily Transactions: 1.2M+
  • Staked ETH: Over 10 million
  • Gas Usage: Spiking across DeFi protocols

Macro Uncertainty Lingers

Still, macro clouds havent cleared. With key U.S. inflation data due this week, the Federal Reserve could keep interest rates elevated. That could pressure all risk assets, crypto included.

Trumps tariff tone just added another layer of uncertainty. Some see it as noise. Others view it as a reminder: U.S. policy remains volatileand so does the market.

  • ETH Price: $3,590
  • ETH/BTC Ratio: ~0.031 (up from 0.022 on June 23)
  • Monthly ETH Gain: 60%+
  • ETF Inflows: Record highs in July

Ethereums price has wobbledbut the broader trend still leans bullish. The rising ETH/BTC ratio signals underlying strength. Institutional buyers are still circling. ETF inflows keep building. And altcoin traders are watching closely.

If the ratio breaks above 0.035, many expect the next leg upnot just for ETH, but for the entire altcoin market.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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