Ethereum’s ether (ETH), the second-biggest cryptocurrency, is down 39 per cent against bitcoin (BTC), hitting its weakest level in almost five years.
Right now, 1 ETH is worth just 0.02191 BTC — the lowest since May 2020. Back then, Ether was around $200, and Bitcoin was just under $10,000. ETH is about $1,800, while BTC skyrocketed to $82,000.
This decline is unusual because ETH performs well after Bitcoin’s "halving" — a major event that reduces the number of new BTC entering the market.
The last halving in April 2024 cut miner rewards in half. In past cycles, ETH gained strength after halving, but this time, it’s down over 50 per cent compared to BTC.
According to the data from crypto intelligence Platform Glassnode, global uncertainties such as trade war, rising inflation, and high bond yields are behind the drop in Ether's value.
Rival blockchains, such as Solana and Tron, have also chipped away at Ethereum’s dominance, offering faster and cheaper transactions that have attracted a growing user base.
Investors are turning to safer assets like gold and Bitcoin, which are more stable compared to Ether.
ETH is having one of its worst quarters against BTC in years. The last time it underperformed was in 2019. While Bitcoin hit record highs in April 2024, Ether is still struggling to reach its 2021 peak and remains 52 per cent below it.
Bitcoin investors have made over 40 per cent returns, while Ether holders have made 1 per cent so far in 2025.
The trend suggests traders are avoiding Ethereum for now, favouring Bitcoin and other blockchain projects instead. And investors are veering towards safer assets, with gold reaching record highs, and Bitcoin benefiting from its status as the most established cryptocurrency.
Ethereum’s outlook remains clouded by delays in network upgrades and internal debates over its long-term development strategy.
A rising ETH/BTC ratio means Ether is gaining against Bitcoin, while a drop suggests Bitcoin is the stronger choice. If the trend continues, ETH could remain under pressure.
But optimism remains over Ethereum’s potential for a turnaround. The US securities and exchange commission has approved spot Ethereum ETFs, which analysts say could drive a surge in institutional investment.
Some market experts predict that this could push ETH prices to $6,500.
Ethereum’s long-term prospects remain tied to its ability to regain investor confidence and reaffirm its role in the developing crypto landscape.