Ethereum Declines as Bitcoin Dominance Drives ETH/BTC Ratio to Four-Year Low
Ethereum (ETH) is experiencing a decline against Bitcoin (BTC), with the ETH/BTC trading pair reaching 0.031, a four-year low. This shift comes as Bitcoin appreciates by 158% over the past year, while Ethereum has only gained about 35%. Currently, ETH is 32% below its November 2021 all-time high of $4,878.
Key Points on ETH/BTC Decline
- ETH/BTC ratio has dropped to 0.031, erasing gains since March 2021.
- The peak was 0.087 in December 2021.
- Factors for underperformance include Trump's preference for Bitcoin.
- Increased competition from platforms like Solana (SOL).
- Corporations favoring Bitcoin for balance sheets.
- Concerns over Ethereum’s high issuance rate affecting its value proposition.
- Recent sale of 10,070 ETH by a whale at a $1 million loss indicates declining trust.
Outlook for 2025
- Analysts predict Ethereum could reach $8,000 in 2025.
- Expectations for ETH/BTC ratio to exceed 0.04 in Q1 2025.
- Renewed interest in Ethereum ETFs may drive capital inflows.
- ETH must overcome resistance at $4,000; currently priced at $3,368.
