Ethereum Struggles Below $2K as Bitcoin Recovers—Will ETH Catch Up?
The cryptocurrency market witnessed a performance divergence between its two largest assets, Bitcoin (BTC) and Ethereum (ETH). Even though Bitcoin shows signs of recovery, accounting for 3.8% in the past two weeks and recouping its $85,000 price level, Ethereum has been struggling to keep up.
ETH is still below the $2,000 mark, which is below last week and currently Transactions slightly above $1,900. The performance difference between Bitcoin and Ethereum has caught the attention of analysts, especially about Ethereum Decreased strength Oppose Bitcoin in the derivatives market.
Ethereum’s decline against Bitcoin: Key market trends
Crypto Analysts Recent analyze ETH/BTC market trends point to the weakening of Bitcoin over the past two years, reflecting a decline in investor confidence and reducing speculative interest in ETH derivatives.
According to Sunflowrquant, Ethereum outperformed Bitcoin during the 2021-2022 period, with strong market interest and activity in Ethereum-based derivatives at the time increasing.
However, since then, ETH/BTC ratio and open interest have both declined, indicating that Ethereum has been losing its stance on Bitcoin in terms of market advantages.
By March 2025, the open interest ratio of ETH futures will drop to 0.15, while the price ratio of ETH/BTC will drop to 0.02. This shows Bearish sentiment As traders and investors turn their attention to Bitcoin, the surrounding Ethereum continues to dominate the market.
The decline in open interest in Ethereum permanent futures contracts further strengthens the notion that traders show less speculative interest in ETH compared to BTC.
What does this mean for the future of ETH
Despite the poor performance of ETH, Sunflowrquant believes its current weaknesses may also reflect broader market fears and uncertainties. Analysts point out that cryptocurrency markets are often driven by emotions, which may recover quickly when they reach extreme lows.
Such low liquidity conditions may lead to unexpected price movements, creating opportunities for ETH to enhance strength for ETH/BTC ratios. From a historical perspective Market downturn Following this is a period of recovery, with Ethereum’s fundamentals still intact. The analyst wrote:
Emotional fluctuations and market fears may lead investors to take more cautious and strategic actions. We may be the basis for a new starting point for Ethereum. Just like in previous cycles, after difficult times, a strong rebound may occur to reach new highs.
If investors return confidence, ETH may reverse its trend, similar to how it performed against Bitcoin in 2021-2022. However, this may Depends on broader market dynamicsincluding institutional adoption, ETH’s network upgrades and Bitcoin’s price stability. Sunflower concluded:
Looking at the price fluctuations in Ethereum, now may be the best time to be part of this change process. We are at the bottom of potential new starting points and ETH opportunities.
Feature image created with dall = e, chart from TradingView
