Quick Summary
- ETH/BTC ratio drops to 0.01767, lowest since January 2020
- Ethereum down 67% against BTC over the past year
- Bitcoin up 34%, favored as a store of value
- Network activity, fees, and DeFi usage on Ethereum declining
- Solana and BNB Chain gaining traction
- Ethereum price hovering around $1,587, key support at $1,500
Ethereum Struggles as Bitcoin Dominates
Ethereum is losing steam in its battle with Bitcoin. The ETH/BTC ratio has plummeted to 0.01767, a level not seen in over five years. While Bitcoin has gained 34% in the past year, Ethereum has lost half its value, highlighting a clear market preference for BTC.
What’s Causing the Decline?
Despite upgrades like Dencun, Ethereum’s core metrics are faltering:
- Network fees are at multi-year lows
- DeFi activity is slowing down
- Solana (+12%) and BNB Chain (+1.5%) are attracting liquidity
- Ethereum’s layer-2 scaling solutions like Base and Arbitrum (+1%) are reducing activity on the mainnet
These trends have weighed heavily on investor sentiment.
Technical Outlook: Will ETH Hold $1,500?
Currently trading around $1,587, ETH faces pressure on both ends:
- Upside potential: Reclaim $1,650 and break above $1,700 could push towards $1,850
- Downside risk: Losing $1,500 support could trigger a fall to $1,440
The RSI is slightly above 40, signaling indecision. Without a fresh catalyst, Ethereum could remain in a bearish phase.
Final Thoughts
Ethereum remains a key pillar in the crypto world, but its weakening position against Bitcoin raises serious questions. Can ETH bounce back, or will faster chains continue to take the spotlight?