Key Points
- Ethereum (ETH) hits a four-year low against Bitcoin (BTC), which reaches a new all-time high of $109K.
- Despite Ethereum’s slump, it retains institutional appeal due to its status as one of only two cryptocurrencies with an ETF.
Ethereum (ETH) has reached a record low against Bitcoin (BTC), falling to levels not seen since March 2021. On Sunday, the value of one Ether dropped to 0.03 BTC, marking a significant 50% decline from its standing a year ago, according to CoinGecko.
In contrast, Bitcoin has been surging, outperforming Ether and other assets, as it hit a new all-time high at $109K on Monday.
Bitcoin’s Yearly Return Climbs as Ethereum Slumps
The decrease in Ethereum’s value comes as Bitcoin’s yearly return climbs to 160%. Over the past week, Bitcoin has gained 16.70%, overshadowing Ethereum’s modest 7.50% gains in the same timeframe. This has led to investors increasingly choosing Bitcoin, shifting the power dynamic between the two digital assets.
Ethereum, known for its role as the first blockchain to introduce smart contracts and decentralized finance (DeFi) applications, has struggled to compete with rising alternatives. Solana, in particular, has gained attention, fueled by memecoin excitement and events like Donald Trump’s official memecoin launch on Solana instead of Ethereum.
Ethereum Retains Institutional Appeal
Despite these challenges, Ethereum has not lost its institutional appeal. World Liberty Financial, a crypto lending platform endorsed by Trump and his sons, has increased its Ether holdings. The fact that Ethereum is the only cryptocurrency besides Bitcoin with an ETF ensures its continued relevance in the eyes of large-scale investors.
Ethereum’s Taker Buy Sell Ratio, a metric that evaluates trading sentiment, currently sits at 0.9723, indicating a slight tilt toward seller dominance, according to CryptoQuant. With a spot price at $3,283.95, reflecting a 2.26% uptick, the cryptocurrency’s fluctuating performance continues to keep traders wary of leveraged positions.
Bitcoin is not just outshining Ethereum but also overshadowing traditional investments like gold. One Bitcoin now commands the equivalent of 40 ounces of gold, with Bitcoin’s share of the gold market cap reaching 11.4%. This highlights a growing investor preference for the digital currency as a store of value.
Ethereum, however, has struggled to maintain momentum. Its price trajectory, which once peaked near $4,250, now fluctuates with persistent volatility. Historical lows like March 2023 marked bearish trends, with the Taker Buy Sell Ratio consistently trending below 1.00 — a signal that traders remain cautious.
From mid-2024, Ethereum did show hints of recovery, gaining traction alongside a gradual rise in the buy-sell ratio. However, the persistent sub-1.00 ratio reflects lingering market skepticism. Observers suggest that a shift above 1.00 would indicate renewed confidence and a potential bullish breakout for Ethereum.
