Ethereum News – May 9, 2025: Ethereum Surges 20% as ETH/BTC Ratio Hits Lowest Level Since 2019
Key Takeaways
- Ethereum (ETH) rallied 20% in the past 24 hours, reaching $2,209 — its strongest single-day move of 2025 so far
- ETH/BTC ratio dropped to 0.022, marking its most undervalued point relative to Bitcoin since December 2020
- Derivatives trading volume surged 184%, and open interest jumped 20%, signaling heavy long-side speculation
- Over $265 million in shorts were liquidated, creating a sharp short squeeze that fueled upside momentum
- Analysts now view Ethereum as a deep-value opportunity, citing potential for outperformance in upcoming cycles
Introduction
Ethereum rocketed upward by 20% in a 24-hour window, surging to $2,209 amid renewed investor appetite and an extreme discount in its BTC trading pair. The ETH/BTC ratio fell to 0.022 — a level not seen since 2020 — positioning Ethereum as significantly undervalued relative to Bitcoin. This sparked a rush of activity in derivatives markets, catalyzing what many are calling a major sentiment reversal.
Market Overview
The rally was largely driven by derivatives activity. Ethereum futures volume exploded by 184% and open interest climbed 20%, pointing to aggressive long positioning by institutional and retail traders alike. According to Coinglass data, these figures marked the largest day-over-day rise in ETH derivatives since Q4 2023.
In tandem, more than $265 million in short positions were liquidated across major exchanges, further intensifying price movement. This cascade of liquidations created a short squeeze, forcing bearish traders to exit rapidly and pushing prices even higher.
ETH/BTC Ratio and Technical Sentiment
The ETH/BTC ratio dropping to 0.022 is being viewed by analysts as a textbook accumulation signal. Ethereum hasn’t been this undervalued relative to Bitcoin in nearly five years. Traders point to previous market cycles where similar ETH/BTC ratio troughs preceded major bull phases for Ethereum.
This metric is now at the center of ETH’s bullish thesis — especially as investors begin rotating out of Bitcoin’s post-halving run into altcoins with more upside potential. The ratio’s historical role as a lead indicator for Ethereum strength is prompting renewed accumulation strategies among crypto funds.
Final Thoughts
Ethereum’s recent 20% surge is not just a breakout in price — it reflects deeper undercurrents in market structure. From undervaluation against BTC to record derivatives interest and massive short liquidation, Ethereum is now re-entering the radar of macro and crypto-native investors alike. If history repeats, this could mark the early stages of a strong ETH-led altcoin cycle.
Disclaimer
This content is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
