NAIROBI (CoinChapter.com) — Ethereum (ETH) has faced strong criticism from skeptics, questioning its ability to regain dominance over Bitcoin. Despite being the second-largest cryptocurrency by market cap, Ethereum’s performance in this cycle has been lackluster, raising doubts about its long-term viability.
Ethereum’s challenges against Bitcoin are evident in the ETH/BTC ratio, currently at 0.68 times its value in June 2022, reflecting its sustained underperformance in this cycle. This is a departure from previous market trends, where Ethereum typically outperformed Bitcoin shortly after cycle lows.
Technical trader Scott Melker highlighted Ethereum’s oversold conditions on the weekly chart, pointing to a rare bullish divergence in the Relative Strength Index (RSI). While Melker suggested this could trigger a short-term rally, the decline in the ETH/BTC pair indicates skepticism about Ethereum’s ability to sustain a meaningful recovery.
Ethereum is trading 70% below its all-time high, while Bitcoin recently reached $80,000. Critics argue that this discrepancy reveals deeper issues compared to Solana’s strong recovery after significant losses.
Large stakeholders have significantly increased their activity, driving Ethereum’s transaction volume to $10.4 billion, according to Santiment. On-chain data shows similarities between Ethereum’s current cycle and previous ones, but its performance continues to lag. The ETH/BTC ratio has dropped 60% since January 2022, a smaller decline than in the last cycle, but the lack of a solid recovery has left many investors skeptical about Ethereum’s momentum.
Cameron Winklevoss mentioned growing institutional interest in this bull run, potentially impacting Ethereum’s future. However, CryptoQuant CEO Ki Young Ju warned of an overheated futures market that could pose challenges in 2025.
Historically, the ETH/BTC ratio typically falls for three to six months after Bitcoin halvings before sharply rebounding. Analyst Charting Guy highlighted a fractal suggesting a potential repeat of this pattern, signaling a possible rebound for Ethereum. On-chain analyst JR supported this view, citing the Actual-Value-to-Investor-Value (AVIV) indicator as a potential reversal sign.
While Ethereum’s struggles against Bitcoin have faced criticism, historical data and technical signals indicate a possible recovery. The uncertainty lies in whether its resilience in the bear market will lead to a sustainable comeback.