Ethereum’s Struggle Against Bitcoin intensifies
Ethereum is facing tough competition from Bitcoin. The ETH/BTC ratio has hit its lowest point in five years, according to CoinGecko. It’s now at 0.01787, a level last seen in January 2020. This drop shows Ethereum’s underperformance compared to Bitcoin. In the past 24 hours, the ratio fell by nearly 5%. It’s down 24% in a month and 67% in a year.
Investors are noticing this gap. Bitcoin has risen by about 34% in the last year, while Ethereum has lost 50% of its value. The market seems to prefer Bitcoin as a store of value, while Ethereum struggles to keep investors interested.
Despite recent upgrades like Dencun, Ethereum’s key metrics are falling. Network fees are at multi-year lows, and decentralized finance activity is down. Chains like Solana and BNB are attracting new liquidity at Ethereum’s expense.
Ethereum’s rollup-based scaling approach has some downsides. The mainnet has seen decreased activity and fee income as users switch to layer-2s like Base and Arbitrum. While layer-2s improve scalability,they’ve had a short-term negative effect on ETH’s price.Regulatory uncertainty has also affected sentiment.
Currently, ETH trades at $1,587. the relative strength index is just over 40, leaning neutral. If ETH can reclaim the 20-day moving average near $1,618 and break past $1,650, short-term momentum may turn bullish. A move above $1,700 could lead to a rally toward $1,850. However, failing to stay above $1,550 may cause a drop toward $1,440.
Ethereum remains a key player in the crypto ecosystem. But its ongoing weakness against Bitcoin raises doubts about when ETH bulls can regain momentum.
