Ethereum Struggles As Bitcoin Dominance Pushes ETH/BTC Pair To 4-Year Low
Ethereum (ETH) continues to lose ground to Bitcoin (BTC) as Bitcoin’s (BTC) dominance rises as US President-elect Donald Trump is set to be inaugurated later today. As of this writing, the ETH/BTC pair is trading at 0.031, marking a four-year low for the ratio.
ETH/BTC continues to fall as Trump focuses on Bitcoin
Over the past year, Bitcoin has appreciated 158%, surging from approximately $41,000 on January 21, 2024 to $107,608 at the time of writing. The cryptocurrency has continued to reach new all-time highs (ATH) throughout the year. In comparison, Ethereum has returned about 35% over the same period and is 32% lower than its ATH of $4,878 in November 2021.
Related reading
The ETH/BTC trading pair (also known as the ETH/BTC ratio within the crypto industry) has hit a four-year low, according to TradingView’s weekly chart. This decline has raised concerns about the possibility of an Ethereum-led altcoin season.
The ETH/BTC ratio currently stands at 0.031, which has wiped out all the gains accumulated since March 2021. The pair peaked at 0.087 in December 2021, at the height of the altcoin season. However, since then, Ethereum, the second-largest digital asset by market capitalization, has continued to fall relative to Bitcoin.
In May 2024, the ratio fell below 0.054, a key support level that had previously held in June 2022. Several factors have contributed to Ethereum’s underperformance, including Trump’s preference for Bitcoin and increasing competition from rival smart contract platforms such as Solana. Sol).
Unlike Bitcoin, Ethereum has struggled with adoption. Businesses around the world are increasingly adding Bitcoin to their balance sheets, cementing Bitcoin’s position as the premier digital asset. In addition, speculation that the United States is establishing a strategic reserve of Bitcoin has further strengthened the argument that Bitcoin’s supply is limited, pushing up its price.
On the contrary, Ethereum is relatively high The issuance rate casts doubt on its claims of “ultrasonic currency.” Ethereum’s performance in 2024 has also eroded the confidence of some of its largest holders. It’s worth noting that there was an ETH whale recently Sell A $1 million loss of 10,070 ETH indicates a decline in investor trust.
Will 2025 change the fate of Ethereum?
While 2024 will be a challenging year for Ethereum’s price performance, cryptocurrency analysts remain optimistic about the asset’s prospects in 2025. For example, a report from Steno Research predict Ethereum could surge to $8,000 this year.
Related reading
Likewise, cryptocurrency analyst Daan predict The ETH/BTC trading pair may rise above 0.04 in the first quarter of 2025. December 2024, Ethereum Exchange Traded Fund (ETF) experienced Renewed interest from institutional investors has raised hopes of significant capital inflows into smart contract platforms.
In other words, Ethereum must first overcome Strong resistance at the $4,000 price level. As of press time, ETH was trading at $3,368, down 1.3% in the past 24 hours.
Featured image from Unsplash, chart from TradingView.com
