The price of Ethereum has continued to decline as the Ethereum Bitcoin ratio has dropped to its lowest point in the previous five years.
Ethereum (ETH), the second-largest digital asset in the world, finds it difficult to compete with Bitcoin. According to market data, the ETH/BTC ratio has fallen to its lowest point in five years. As a result, analysts and investors are doubting Ethereum’s ability to bounce back in the upcoming quarter, given that Bitcoin might maintain its established dominance in the market for digital assets.
Ethereum Bitcoin Ratio Hits New Lows
In the first quarter of 2025, Ethereum did not perform as well as Bitcoin. The Kobeissi Letter recently reported that the Ethereum to Bitcoin ratio has fallen to 0.02—the lowest since December 2020.
Ethereum has historically strengthened following Bitcoin halvings, but the pattern has reversed. Ethereum has had difficulty gaining traction while the price of Bitcoin is increasing.
Several factors have caused this decrease. More institutional investment has been attracted to Bitcoin as its reputation as digital gold has grown. The coin has also encountered difficulties, such as competition from other blockchain networks and comparatively higher gas fees.
Regretfully, there were some issues with the Ethereum Pectra update, which analysts think might lead to a rise in the coin’s value. Before the Hoodi testnet’s recent launch, several testnet attempts failed, according to CoinGape.
According to some analysts, Ethereum’s switch to proof-of-stake hasn’t increased the market as much as anticipated.
Performance in Q1 and ETFs Decline
In the first quarter of 2025, the price of ETH has performed poorly. The coin has fallen 46% this year, almost four times as much as Bitcoin’s 12% decline.
Ethereum has remained weak despite many investors’ expectations for a robust bull run. While Ethereum has not seen the same level of interest for its potential ETF, spot Bitcoin ETF adoption earlier this year attracted billions of dollars.
According to market analysts, institutional investors remain cautious about Ethereum’s potential long-term value compared to Bitcoin. Bitcoin is a safer option for institutional investors due to its fixed supply and reputation as an inflation hedge.
What’s Next For ETH Price?
If general market conditions improve and the Ethereum Pectra upgrade is released on the mainnet, some analysts predict that the price of ETH could reach $10,000.
Others caution that investors might begin moving their money to other networks like Solana or Avalanche if the coin’s value declines compared to Bitcoin. Some traders anticipate Ethereum will recover as Bitcoin stabilizes, even though short-term price forecasts are still speculative. According to some, the ETH/BTC ratio may decline even more.
