ETH/BTC ratio rebounds—are institutional funds rotating? A deep dive into structural signals in the crypto market

In April 2026, the main storyline in global financial markets is undergoing a rapid shift. The successful agreement on a temporary ceasefire between Iran and the United States has become the key variable triggering this change. According to Gate market data, as of April 16, 2026, BTC/USDT is priced at $75,000, with a 24-hour increase of 1.19%. In this rebound, Bitcoin reached a high of $76,040, the highest level since February 6.

Positive signals at the geopolitical level are directly reflected in commodity prices. WTI crude oil plunged 6% to $92.0, and the gradual restoration of shipping through the Strait of Hormuz is seen as a key factor. Meanwhile, on April 15, the S&P 500 index closed above the 7,000-point integer mark for the first time in history, at 7,022.95 points, while the Nasdaq logged gains for 11 consecutive trading days. Multiple Wall Street analysts noted that the logic behind the rise in the U.S. stock market has shifted from the fading of an energy risk premium to a repricing of AI prospects, tax-cut policies, and the resilience of corporate earnings. However, Citi strategist cautioned that this rebound window is inherently not stable.

Why the realized price of $76,800 has become a key resistance level on-chain

Despite a warming macro backdrop, Bitcoin’s on-chain structure is sending more restrained signals. CryptoQuant research director Julio Moreno said that Bitcoin’s price is testing the on-chain “realized price” of $76,800, a level that has historically often been regarded as a bearish key resistance.

From the perspective of behavioral finance, the logic behind the formation of this resistance level is that when many holders approach their cost basis, they tend to sell to lock in profits, thereby suppressing further upside. Moreno recalled that this price range was precisely capping the upside during Bitcoin’s bear-market rebound in January 2026; after touching it, price turned downward. In addition, the share of large transactions surged from below 10% to over 40%, which in past cycles has typically corresponded with strong near-term sell pressure. Current daily realized profits are about $500 million, still below the $1 billion threshold of past sell-off peaks, but if Bitcoin holds above $76,000 and moves toward $76,800, the scale of profit-taking could accelerate in breaking past the warning line. This means the rebound faces real structural tests at the on-chain level.

What cautious expectations are being validated by the risk reversal in the options market

Contrasting with the strength in spot prices, the derivatives market has not shifted to optimism in parallel. QCP Capital said the rally this time was driven mainly by spot buying, not a broad-based recovery in risk appetite. The current Bitcoin perpetual futures funding rate remains negative, and open interest has been falling, indicating that shorts are still increasing hedging rather than covering passively.

The options market is also sending cautious signals. Short-term implied volatility is subdued—one-month tenors are below three-month tenors—and the risk reversal (risk reversal) indicators show that demand for downside protection is higher than bullish bets on the upside. This suggests traders are more inclined to pay for potential downside rather than chase upside gains. This kind of structure usually means the market’s core expectation is not a trend-breaking breakout, but rather a range-bound move or a pullback. Combined with the macro backdrop, long-term U.S. Treasury yields and gold have not confirmed a comprehensive rebound in risk appetite—gold is still near elevated levels, showing that demand for safe-haven assets remains. Current conditions reflect more of a “sentiment repair” driven by ceasefire expectations than a structural de-risking of core risks.

What capital-structure signals are being released by the ETH/BTC ratio rebounding from its annual low

Beyond the Bitcoin-dominant market narrative, Ethereum’s relative strength is becoming an important window into structural changes within crypto assets. According to Gate market data, as of April 16, 2026, the ETH/BTC ratio has rebounded meaningfully from the annual trough of about 0.028 in February; it is now hovering around 0.0313, setting the relative high over the past three months.

This ratio recovery is not an isolated price phenomenon. In Q1, the Ethereum network added new users with a quarter-over-quarter increase of 82%, and total network transactions reached a record 200.4 million, up 43% quarter over quarter. At the same time, the total stablecoin supply on the Ethereum network has reached a historical peak of $180 billion, supporting roughly 60% of the stablecoin circulation worldwide. When on-chain fundamentals indicators and asset price trends diverge for a long time, the market has an inherent mean-reversion impetus; this ratio rebound can be viewed as a delayed confirmation on the price side of strong fundamental data.

Do differentiated fund flows and altcoin rotation have a sustainable logic?

ETF fund flows further validate structural changes within the crypto market. On April 14, U.S. spot Bitcoin ETFs combined recorded $411 million in net inflows, with BlackRock’s IBIT attracting $213 million on a single day; meanwhile, U.S. spot Ethereum ETFs also recorded a net inflow of $53.03 million. At the same time, total net inflows into U.S. spot Bitcoin ETFs have already exceeded $56 billion, providing long-term structural support for the market.

From an asset-allocation perspective, ongoing large-scale net inflows into Bitcoin ETFs reflect institutions’ demand to allocate to core value-storing assets, while the simultaneous accumulation in Ethereum ETFs suggests that some institutions are attempting to find opportunities for excess returns in valuation troughs. Analysts noted that if the ETH/BTC ratio closes back above 0.035 on a weekly basis, it will indicate that capital is continuously flowing into Ethereum and other high-risk assets. Currently, the price of Ethereum is still down more than 50% from its 52-week high, so there is objectively room for valuation repair. But it’s important to note that the sustainability of capital rotation depends on two conditions: further easing of macro tail risks, and whether growth in Ethereum’s on-chain activity can translate into actual price support.

Summary

Overall, the current crypto market is at a node where multiple forces are competing. On the macro side, the Iran-U.S. ceasefire and the U.S. stock market hitting new highs provide step-by-step support for risk assets; on the on-chain side, the realized price of $76,800 forms a key resistance; and the cautious sentiment implied by the options market suggests that the quality of any rebound still needs to be validated. The rebound in the ETH/BTC ratio, along with the differentiated fund flows of ETFs, indicates that the market may be in the process of shifting from “Bitcoin leading the surge” to “structural rotation,” but the sustainability of that shift still relies on further confirmation from both macro narratives and on-chain data.

FAQ

Q: What on-chain resistance level is Bitcoin currently facing?

A: CryptoQuant data shows that Bitcoin is currently testing the on-chain “realized price” of $76,800; historically, this level has repeatedly capped rebound space and is regarded as a key resistance level.

Q: How does the options market view the outlook for future moves?

A: Risk reversal indicators in the options market show that demand for downside protection is higher than upside bets, and short-term implied volatility is lower than long-term implied volatility. Traders are more inclined to price potential downside, and the overall tone remains cautious.

Q: What does the rebound in the ETH/BTC ratio imply?

A: The ETH/BTC ratio has risen from the low of 0.028 to around 0.0313. This is mainly driven by fundamental improvements such as an 82% surge in new users on the Ethereum network and stablecoin supply reaching $180 billion. It may indicate that capital is rotating from Bitcoin into a wider range of crypto assets.

Q: What structural characteristics are visible in institutional fund flows?

A: Bitcoin ETFs continue to receive large-scale net inflows ($411 million on April 14 alone), and Ethereum ETFs have also recorded net inflows, suggesting that institutional capital is rebalancing between core assets and high-volatility assets.