Ethereum Hits Historic Low Against Bitcoin
Key Takeaways
- The ETH/BTC ratio has reached a new low of 0.022.
- Ethereum (ETH) has been losing value against Bitcoin (BTC) for over three years.
- Some experts question the investment appeal of ETH.
- Despite this, many traders expect ETH to reach $4,000 USD by the end of 2025.
- Institutional investors are currently showing little interest in ETH.
ETH/BTC Ratio at Historic Low
The Ethereum to Bitcoin ratio (ETH/BTC) is an important indicator of the relative strength of the two cryptocurrencies. Currently, this ratio stands at 0.022 – the lowest level in years. This means you can now get more ETH for one BTC than at any point in the last three years.
According to Alex Thorn, Head of Research at Galaxy Digital, Ethereum has lost about 74% of its value relative to Bitcoin since transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Some voices in the community are already calling for a return to the old consensus mechanism in order to stabilize ETH’s value.
Declining Network Activity as a Warning Sign
Quinn Thompson, founder of the hedge fund Lekker Fund, currently sees no compelling investment case for Ethereum. He points to declining transaction volumes, stagnant user growth, and falling network fee revenues. In his view, Ethereum offers utility as a platform, but little value for investors.
Nic Carter, partner at Castle Island Ventures, attributes ETH’s weakness to so-called Layer-2 solutions (L2s). These scale Ethereum but also divert value away from the main blockchain (Layer 1). Carter also criticizes the high token issuance, which he says has diluted supply.
Diverging ETF Flows Between BTC and ETH
A look at capital flows into exchange-traded funds (ETFs) paints a clear picture: while Bitcoin ETFs in the U.S. saw over $1 billion USD in inflows over ten consecutive days, Ethereum ETFs have recorded outflows of more than $400 million USD since February 20 – with only two days of positive inflows.
This trend indicates weak institutional interest in Ethereum. This hesitancy is also reflected on social media.
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Market Expectations Remain Optimistic
Despite the current weakness, many market participants still believe in a recovery for ETH. On the betting platform Polymarket, users have placed the highest bet ($710,000 USD) on ETH reaching $4,000 USD by the end of 2025. Options data from Deribit also show that traders see a 10% chance of this price target being hit by September 2025.
At the time of analysis, ETH was trading at $1,870 USD – about 54% below its December 2024 peak.
Our Assessment
Ethereum is currently under significant pressure – both in comparison to Bitcoin and due to declining network activity. The drop in the ETH/BTC ratio is a clear signal: investors currently favour BTC. The criticism of Layer-2 solutions and tokenomics is not unfounded.
Nonetheless, Ethereum remains technologically relevant. The platform continues to be used for decentralized applications (dApps) and smart contracts. Long-term investors should keep an eye on fundamental developments – such as developer adoption, growth in the DeFi sector (decentralized finance), and regulatory changes.
In the short term, ETH is more of a speculative investment. In the long run, its potential will largely depend on whether the network can attract more users and developers again – and whether it can succeed in bringing value back to Layer 1.
Sources
- The Block
- Deribit
- Polymarket
- Soso Value
- TradingView
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,846.99 |
| 24h % | 1.94 % |
| 7d % | -9.72 % |
| 30d % | -16.97 % |
| 60d % | -42.57 % |
| 1y % | -48.79 % |
| Market Cap | $222,687,352,623.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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