Ethereum Hits Multi-Year Lows Amid Rising Competition
Key Takeaways
- Ethereum (ETH) hits a 7% market share — its lowest level since 2021.
- ETH/BTC ratio drops to a 5-year low of 0.018 — a 77% decline.
- Institutional demand for ETH ETFs drops significantly in Q1 2025.
- Upcoming upgrades like Pectra and Fusaka aim to improve scalability and transaction costs.
- One analyst predicts a short-term 20% price increase based on technical indicators.
Ethereum Losing Market Share – Causes and Implications
Ethereum, long considered the leading platform for smart contracts and decentralized applications (dApps), is currently facing pressure. The cryptocurrency’s market share has dropped to 7% — a level last seen in 2020. For comparison: during the 2021 bull market, its share was 22%.
One reason for the decline is increasing competition from other blockchains like Solana. Regulatory uncertainty and negative market sentiment are also weighing on Ethereum’s development. Since its peak of over $4,000 USD, ETH’s price has dropped approximately 64% to around $1,500 USD.
ETH/BTC Ratio at Historic Low
The ETH/BTC ratio measures Ethereum’s price performance relative to Bitcoin. It currently sits at 0.018 — a 77% decline since the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This highlights that Bitcoin has significantly outperformed Ethereum in recent years.
This drop is not just a technical metric, but also an indicator of investor confidence. Many institutional investors currently favour Bitcoin, as reflected in capital flows.
Declining Institutional Interest in ETH ETFs
As recently as December 2024, spot Ethereum ETFs saw inflows of over $2 billion USD. However, in the first quarter of 2025, that interest has significantly declined. According to data from Soso Value, inflows in January and February were under $100 million USD. Since March, approximately $500 million USD has been withdrawn.
This trend shows that institutional investors are currently acting more cautiously. Possible reasons include weak price performance, regulatory uncertainty, and a lack of short-term catalysts.
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Technical Optimism: Is a Reversal Coming?
Despite the negative sentiment, there are also optimistic voices. Well-known trader Michael van de Poppe sees oversold conditions in the current market. Based on technical analysis, he expects a potential price recovery of up to 20% by early May.
Another bright spot is the planned network upgrades. With “Pectra” and “Fusaka,” Ethereum aims to speed up and reduce the cost of both Layer-1 and Layer-2 transactions. These improvements could help Ethereum compete more effectively with Solana and other blockchains.
Our Assessment
Ethereum is currently under significant pressure — both in terms of price and market share. The drop to a 7% market share and the weak ETH/BTC ratio show that investors are currently favouring other projects. Institutional hesitation around ETH ETFs is also a clear signal.
In the short term, a technical rebound could help stabilize the price. Over the medium to long term, however, recovery will depend heavily on the successful implementation of the planned upgrades. Regulatory clarity and a positive market trend will also be key factors.
If you’re invested in Ethereum or planning to enter the market, you should closely monitor the coming months — especially developments around staking in ETH ETFs and the rollout of the network upgrades.
Sources
- TradingView
- Soso Value
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $1,592.15 |
| 24h % | 0.42 % |
| 7d % | 2.45 % |
| 30d % | -21.40 % |
| 60d % | -41.84 % |
| 1y % | -45.87 % |
| Market Cap | $192,182,118,295.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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