The ETH/BTC price has crashed down to 0.022, the lowest it has been since December 2020. It’s a stock signal for a dramatic cut in the relative strength of crypto’s top two assets.
Ethereum’s weakening position against Bitcoin‘s surging dominance is reflected in this 73% decline from the ratio of 0.085 in the month of September 2022. Questions about a future trajectory for both assets are raised by it.
Key Takeaways:
- 1. Ethereum has turned weaker against Bitcoin even as the ETH/BTC price has dropped to the 0.022 level, its lowest since December 2020. The decline of 73% in these assets alarms the future of both of them.
- 2. Issues of a loss of market dominance, such as technical problems and reduced institutional interest, plague Ethereum.
Technical Analysis Reveals Continued ETH/BTC Price Weakness
Under current market data, the prices of ETH/BTC are seeing continuous pressure down with little sign of any breaks being made to properly reverse. Ethereum’s price seems to be little recovery.
In fact, as of April 2025, Ethereum was trading around $1,880, down a steep 62% from its November 2021 all-time high at $4,890. However, Bitcoin has shown high resiliency as it trades around $84,300 with a relatively smaller 10% year-to-date decrease. The divergence in performance is what led the ETH/BTC price to such uncharted waters in over four years.
Mags has described Ethereum’s chart as “one of the worst charts of all time,” as technical analysts like. Three previous failed attempts to rise above the $4,000 roadblock within the current cycle serve as their point of reference.
#Ethereum – Unbiased Analysis
ETH has one of the worst charts of all time. The price attempted to break above the range high of $4,000 three times in this cycle but failed.
On the last rejection, price broke down even below the mid-range and is also trading below the… pic.twitter.com/iXkg8THiFy
— Mags (@thescalpingpro) March 18, 2025
The ETH/BTC price has breached mid-range support levels. Further downsides could materialize as the upward trendlines were violated, characterizing something of a violation of long-established opening ranges.
If the ETH/BTC price can not make a decisive move above $2,150, it is likely to fall further. This could possibly flop at low support levels around $1,060—prices that were still at play during the 2022 bear market.
The weakening ETH/BTC price has been the result of many fundamental developments. Comparatively, the amount of Ethereum locked within the market has plummeted from 61.64 percent of the market in February 2024 to around 52.5 percent of the market in April 2025.
It marks a major deflation in Ethereum’s decentralized finance supremacy. However, other Layer 1 blockchains like Solana have also seen tremendous growth as SOL’s TVL share rose from 2.84% to 7.24% during the same period.
Ethereum inflow data shows more selling pressure on the ETH. Crypto quant reports inflows of 461,901 ETH (almost $1.50 billion) to top exchanges.
In this heightened liquidity movement, it usually precedes other selling. By generating such movements against the ETH/BTC price stability, further threats are posed to the stability of ETH/BTC price stability.
Short positions in Ethereum have gone up significantly at the same time. In early February 2025, they increased by 40%, and since November 2024, by over 500%—an unprecedented amount of bearish sentiment.
The ETH/BTC price is also affected by the structural challenges of the Ethereum network. Despite the multiple upgrades in protocols, Ethereum’s mainnet still processes only 10-62 transactions per second with an effective throughput around 16 TPS.
That’s much less than competitors like Solana can do (4,322 TPS). Activity has been diverted off mainnet to the Layer-2 rollups like Arbitrum, Optimism, and Base.
Standard Chartered analysts extrapolate that Base alone has taken down around $50 billion from Ethereum’s market cap. Redirection of economic activity in the direction of Ethereum has been achieved.
Institutional Interest Divergence that are Impacting ETH/BTC Price
As Ethereum ETF products have thus far been less in demand than the Bitcoin ones, this has put further pressure on the ETH/BTC price. Net inflows into Bitcoin ETFs have exceeded $36 billion, while the same period for Ethereum ETF products has been nearly non-existent.
The data as of March 2025 shows net flows into ETH ETFs down 9.8% to $2.43 billion.
The imbalance is another signal of the broader feeling among the market that Bitcoin is fast becoming a digital store of value and inflation hedge. For Ethereum’s value proposition as a computational platform, cheaper and faster alternatives are taking over.
This has consequently lowered Ethereum’s market dominance below 8.4% to its lowest point, in over four years. Such capital outflows toward Bitcoin and emerging Layer 1 platforms were the implication of this.
Moreover, the lowered effectiveness of the monetary policy inherent to Ethereum due to its low fee burning mechanism. Fee burns have dropped dramatically due to the fragmentation of activity across so many Layer 2 solutions.
The initial purpose of ETH was to make ETH deflationary through the means of EIP-1559 and now, at an annualized rate of 0.5% ETH is net inflationary. Ethereum’s staking yields have dipped below 2.5%, leaving the token less appealing than stablecoin strategies that already pay in excess of 4.5% across DeFi platforms.
The return of the ETH/BTC price depends on a variety of factors such as macroeconomics and the coming protocol upgrades of Ethereum. In addition, its recovery will be largely influenced by shifts in institutional sentiment.
According to Trader Michaël van de Poppe, if Ethereum can go above the $2,100-$2,150 pattern, it could spur a run to the $2,800 zone. The tap of the face would indicate that Ethereum has a renewed strength in the market.
I think that $ETH shows a deviation here.
It didn’t break any crucial level yet, but it’s facing one.
Break through $2,100-2,150 and we’ll probably run to $2,800 quite quickly.
DXY fell down substantially, likely we’ll see a good Q2. pic.twitter.com/70lbJ9skYo
— Michaël van de Poppe (@CryptoMichNL) March 24, 2025
A supportive environment for risk assets such as Ethereum includes the recent decline in the U.S. Dollar Index. In Q2 2025, this trend can be good for Ethereum as it will boost the potential of its recovery.
Mike McGlone, of Bloomberg strategist, warns that ETH is closely correlated to traditional risk assets. The pressure could be on Ethereum if U.S. equities decline due to inflation or weak global growth.
If this trend continues, the ETH/BTC price could drop by nearly 50 percent from current levels to $1,000.
Conclusion
Negative pressures on the ETH/BTC price are present; Ethereum has difficulties scaling; and there are failures in economic design and positioning on the markets. If breakthroughs or new interest fail to happen, it may continue to lose ground to Bitcoin and future rivals. Can Ethereum overcome the above challenges and once again make its stable position in the market?
