Ethereum’s performance against Bitcoin (BTC) has weakened significantly, with the ETH/BTC ratio dropping nearly 70% since the Merge, according to Cointelegraph.
Despite initial expectations that Ethereum’s transition to Proof-of-Stake (PoS) would make ETH deflationary, key market trends have worked against Ethereum’s growth.
Bullish Case for Ethereum:
Ethereum ETFs and network upgrades (Dencun upgrade) could reignite demand.
DeFi and NFT market rebounds could increase network activity and gas fees.
If Bitcoin consolidates, ETH could catch up as capital rotates into altcoins.
Bearish Risks for Ethereum:
Bitcoin dominance continues rising, keeping ETH suppressed.
Ethereum struggles to differentiate itself against newer Layer 1 competitors.
Major ETH holders are still selling, applying downward pressure.
Ethereum’s 70% decline against Bitcoin since the Merge highlights growing concerns about ETH’s long-term positioning. With institutional money flowing into BTC and Ethereum facing stiff competition from Solana and other Layer 1s, ETH needs a strong catalyst to regain its momentum.
While a short-term ETH/BTC rebound is possible, Ethereum must increase network activity and investor confidence to reverse its long-term downtrend.
To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum’s price action and institutional adoption.