Ethereum’s performance continues to deteriorate relative to Bitcoin, as confirmed by the ETH/BTC ratio falling to a five-year low. Recently, the ratio touched 0.01787, a level last seen in January 2020, signifying Ethereum’s sustained underperformance compared to Bitcoin. Over the past 24 hours alone, the ratio declined by nearly 5%, and over the last month has dropped by 24%. Remarkably, on a year-over-year basis, the ETH/BTC ratio has shrunk by 67%.
This stark contrast in performance is reflected unmistakably in investor sentiment. While Bitcoin has appreciated nearly 34% over the past year, Ethereum has lost approximately half of its value in the same period. Investors appear increasingly convinced about Bitcoin’s narrative as a stable store of value, whereas Ethereum faces mounting challenges in attracting and sustaining investor interest.
Despite significant advancements and technical upgrades—including the recent Dencun update—key Ethereum metrics have struggled. Transaction fees have plunged to multi-year lows, activity in decentralized finance (DeFi) has notably diminished, and competition from faster, more affordable blockchain networks like Solana and BNB Chain is diverting liquidity away from Ethereum.
Additionally, Ethereum’s strategy of scaling through rollups has delivered some unintended consequences. As users shift increasingly to Layer-2 solutions such as Base and Arbitrum, main-network activity and fee income have both come under pressure. Although Layer-2 solutions help Ethereum scale efficiently in the long term, they appear to be negatively impacting ETH’s short-term price performance. Further complicating matters are lingering regulatory uncertainties and a general absence of decisive market catalysts.
From a technical analysis viewpoint, Ethereum is currently trading around $1,587, with a Relative Strength Index (RSI) slightly above 40—indicating somewhat neutral market sentiment leaning cautiously bearish. Bulls will need to secure a move above the 20-day moving average, currently near $1,618, and break convincingly past resistance levels at $1,650. Doing so could positively shift Ethereum’s short-term outlook. A decisive break and close above the $1,700 threshold would open the possibility for a bullish rally toward $1,850.
Conversely, if Ethereum fails to maintain key support around the $1,550 mark, traders can expect further declines toward the next support level stationed near $1,440. Although Ethereum retains its critical role within the broader crypto ecosystem, its ongoing relative weakness against Bitcoin raises notable concerns among investors and analysts alike regarding when, or indeed whether, ETH bulls might regain meaningful momentum.
