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 decline shows Ethereum’s underperformance compared to Bitcoin.
Over the past 24 hours,the ratio fell by nearly 5%. It’s down 24% in the last month and 67% over the past year. Bitcoin has risen by about 34% in the last year, while Ethereum has lost 50% of its value. This trend suggests that investors are favoring Bitcoin as a store of value.
Ethereum’s key metrics are also dropping. Network fees are at multi-year lows, and decentralized finance activity is declining. Chains like Solana and BNB are attracting more liquidity. Ethereum’s rollup-based scaling approach has some drawbacks. The mainnet has seen decreased activity and fee income as users switch to layer-2s like Base and Arbitrum.
From a technical view,ETH is trading at $1,587. The relative strength index is just over 40, indicating a neutral territory. If ETH can break past $1,650, short-term momentum may turn bullish. A move above $1,700 could lead to a rally toward $1,850. However, if it fails to stay above $1,550, it may drop toward $1,440.
Ethereum still plays a major role in the crypto ecosystem.But its ongoing weakness against Bitcoin raises doubts about when ETH bulls can regain momentum.
