Introduction
Ethereum is losing value compared to Bitcoin, hitting its lowest point in five years. While Bitcoin keeps getting stronger in the market, Ethereum is struggling to keep up. The ETH/BTC pair has dropped a lot, meaning that more investors are choosing Bitcoin over Ethereum. If this continues, Ethereum’s price could fall even more.
Ethereum Struggle Against Bitcoin’s Strength
In the past, when Bitcoin slowed down, investors moved their money into Ethereum, helping ETH’s price go up. This happened in May 2024, when Bitcoin hit $70K and struggled to move higher. At the same time, Ethereum’s price jumped by 10% in one day, pushing ETH/BTC to its highest level in three months. That rally continued, and Ethereum’s price surged 19.25%, reaching $3,697.80. This was Ethereum’s biggest one-day gain, showing that buyers were excited.
The same thing happened after the U.S. election when Bitcoin reached its all-time high of $99K. As traders became cautious about BTC, they moved their money into Ethereum, causing ETH to gain nearly 10% in a single day and reach $4,000 for the first time in nine months. But now, things have changed. Ethereum’s value compared to Bitcoin has dropped, and the ETH/BTC pair is at its lowest in five years.
Ethereum Drops Below Key Support Levels
For the first time in two years, Ethereum has fallen below the $2,000 support level, which made many traders panic and sell. Meanwhile, Bitcoin’s dominance in the market is still over 60%, showing that investors prefer BTC over ETH.
Usually, when the ETH/BTC ratio drops, it means Bitcoin is getting stronger while Ethereum is getting weaker. This suggests that Ethereum is not as attractive to investors as it used to be, especially when the market isn’t doing well.
According to Ethereum’s Cost Basis Distribution (CBD) data, some traders are still buying ETH, but not as much as before. Last week, Ethereum fell below $1,880, but not many investors bought at this price, showing weak demand. However, there is now a new support zone at $1,900, where 600,000–700,000 ETH were bought. If more people start buying at this level, Ethereum could find support and stop falling.
Can Ethereum Make a Comeback?
If Bitcoin’s price goes up, Ethereum might follow and rise back above $2,000. But the ETH/BTC downtrend is a big warning sign that Ethereum is losing strength. Ethereum used to be very popular with traders because of its high rewards and fast growth. But now, as Bitcoin becomes stronger, Ethereum seems to be losing some of its appeal. If this continues, Ethereum might not only struggle in the short term but also in the long run. Over the next few weeks, investors will be watching closely to see if Ethereum can recover or if Bitcoin will keep taking the lead.
Conclusion
Ethereum’s value compared to Bitcoin has dropped to its lowest in five years, which is not a good sign for ETH. Since Bitcoin’s dominance is still strong, Ethereum needs to hold key support levels and bring in more buyers to stop its price from falling. If Bitcoin continues to outperform Ethereum, ETH could face even more losses, making it harder to recover.
