[DigitalToday reporter Yoonseo Lee] Ethereum posted a higher return than bitcoin in July, supported by inflows into spot exchange-traded funds (ETFs) and expanded corporate buying. Still, analysis says on-chain indicators tied to ETH/BTC have not yet reached past low zones, making it hard to conclude that a trend reversal is confirmed.

As of Aug. 2 (local time), blockchain outlet CryptoSlate reported that ethereum rose 19 percent in July, at one point climbing to $1,970, and has since pulled back to around $1,880. Over the same period, bitcoin gained 8 percent and repeatedly failed to break above $65,000. The ETH/BTC ratio rose above 0.030 for the first time in three months before falling to 0.02962. The gain over the past month exceeded 10 percent.

In the market, expectations grew that funds could be shifting back into ethereum after a period of weakness. Net inflows into spot ethereum ETFs in July were tallied at $365.17 million. That was the strongest monthly performance this year. By contrast, spot bitcoin ETFs drew in only $172.43 million over the same period. That was the weakest monthly inflow since their launch in January 2024.

The spot ethereum ETF flow marked a clear reversal compared with the phase that saw outflows of more than $1 billion over the past two months. Morgan Stanley's ethereum trust, MSSE, was also newly listed and began trading, gathering about $20 million in assets in its first few days. While smaller than existing products, Morgan Stanley has about 16,000 financial advisers and a client asset base of about $7 trillion. Its fee was presented at 0.14 percent, and was cited as a factor that could spur competition among existing spot ethereum ETFs.

A difference also emerged in corporate treasury strategy. BitMine, the company holding the most ethereum, increased its holdings each week in July. However, the pace of buying gradually slowed. BitMine's ethereum holdings rose from about 5.7 million ETH at the end of June to 5.79 million ETH as of July 26. By contrast, Strategy, the company holding the most bitcoin, did not make additional purchases in July. The company led by Michael Saylor focused on increasing cash holdings and supporting preferred shares.

Although ethereum led in both ETF flows and corporate buying in July, other signals suggest it is difficult to call a structural bottom based on a price rebound alone. On TradingView, the ETH/BTC ratio is still down 13 percent this year. It is about 73 percent below its 2017 peak of 0.11. While it has stopped falling at a multi-year low around 0.028, it has not sufficiently recovered the relative value lost against bitcoin.

CryptoQuant indicators pointed to a similar conclusion. The ETH/BTC market value to realized value ratio fell to 0.65 now from 0.95 in August 2025. That suggests much of ethereum's overvaluation burden has been eased, but in 2019 and early 2025, when past structural lows formed, the figure dropped below 0.45. The current level remains far from past reversal phases when undervaluation compression progressed further.

Exchange inflow data also did not show a completed bottom signal. The ratio of ETH and bitcoin deposits flowing into trading platforms fell to about 0.8 now from above 1.5 in August last year. Relative selling pressure has sharply declined, but periods when ETH/BTC reversed in the past came when the ratio neared 0.4. That suggests the strongest distribution selling has passed, but it has not reached an exhaustion phase at the same level as prior lows.

Ultimately, ethereum's July strength is seen as a move driven jointly by ETF demand and corporate demand beyond the spot market. But to extend into a broader trend reversal, ETH/BTC needs to firm support above 0.030, and valuation and exchange-flow indicators need to move closer to past trough ranges. The prevailing view is that the current stage is better seen as a rebound from depressed levels rather than a confirmed cyclical bottom.