Ethereum quickly lost its position in Bitcoin, with the ETH/BTC ratio falling to its lowest level in five years.
According to Coingecko data, the ETH/BTC ratio is now at 0.01787, a level not seen since January 2020. The sharp decline reflects on continued performance compared to Bitcoin (BTC). Over the past 24 hours, the ratio has fallen by nearly 5%. It’s down 24% over the past month, down 67% from last year.
This difference has attracted investors’ attention. Bitcoin rose about 34% last year, while Ethereum lost 50% of its value. While Ethereum has been difficult to maintain investors’ profits, the market appears to support Bitcoin’s worthy position.
Despite recent advances such as Dencun upgrades, key metrics for Ethereum have declined. Network prices have fallen to multi-year lows, decentralized financial activity has declined, and faster chains like Solana (SOL) and BNB chains (BNB) are attracting new liquidity at Ethereum costs.
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Ethereum’s rollup-based scaling approach also had some drawbacks. Ethereum Mainnet is experiencing a decline in activity and fee revenue as more users switch to Layer-2, such as bases and arbitrum (ARB). Layer-2 promotes scalability, but has a short-term negative impact on ETH price actions. The lack of fresh catalysts and regulation uncertainty also affects emotions.
From a technical standpoint, ETH is trading at $1,587 at the time of reporting. The relative strength index is hovering above 40, further tilting towards the neutral region. If the Bulls can bring their 20-day moving average closer to $1,618 and destroy it above $1,650, then the short-term momentum could be bullish.
Ethereum price analysis. Credit: crypto.news
The decisive move, over $1,700, opens the door to the rally towards $1,850. On the downside, if it doesn’t exceed the $1,550 support, it could drop to $1,440. While Ethereum still plays a major role in the crypto ecosystem, its ongoing weakness against Bitcoin raises questions about whether ETH Bull can regain momentum.
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