The crypto market is currently witnessing a stark divergence in the fortunes of its two leading assets: Bitcoin and Ethereum.
Cryptocurrency market trends indicate a stark divergence in the fortunes of Bitcoin and Ethereum. While Bitcoin has maintained relative resilience, Ethereum is grappling with a confluence of challenges, leading to a five-year low in its performance against Bitcoin.
According to data from Glassnode, the ETH/BTC ratio has descended to 0.02191, highlighting Ether’s relative weakness. This marks a 39% drop in ETH’s value against BTC from its 2020 highs and signals a significant shift in the market dynamics.
This disparity is further emphasized by Ethereum’s dismal first-quarter performance, which saw a staggering 45.98% decline, rendering it the worst Q1 showing for the asset since the tumultuous bear market of 2018, when it registered a 46.61% drop.
The current downturn is particularly alarming as it marks the first time in Ethereum’s history that it has underperformed Bitcoin in a post-halving year. Typically, post-halving periods are characterized by bullish sentiment and significant price appreciation across the crypto market, including Ethereum. However, the current landscape paints a drastically different picture, with ETH struggling to maintain its footing against its dominant counterpart.
This divergence is a pivotal development, given the traditional narrative surrounding Bitcoin and Ethereum. In years following Bitcoin’s halving, a common theme has been the outperformance of altcoins, with Ethereum leading the charge. This narrative is now being challenged, as Bitcoin’s recent surge and anticipation for the upcoming halving have tipped the scales in favor of the dominant cryptocurrency.
A closer examination of the data reveals that Ethereum’s performance in Q1 2025 was significantly worse than usual. According to Coinglass data, Ethereum has historically experienced an average gain of 77% in its first quarters. However, this time around, the asset faced a 45.98% slump, highlighting the severity of the current downturn.
Furthermore, the recent struggles of Ethereum ETFs add another layer of complexity to the situation. A prolonged period of consecutive outflows, spanning 17 days, only ended on Friday, March 27. This sustained outflow of capital from Ethereum ETFs underscores a lack of investor confidence and a reluctance to allocate funds to the asset.
The confluence of these factors – the five-year low ETH/BTC ratio, the historic Q1 slump, and the persistent ETF outflows – paints a concerning picture for Ethereum. The asset, once hailed as a leading innovator in the crypto space, is now facing a critical juncture, with its future trajectory hanging in the balance. As the second-largest cryptocurrency by market capitalization, any sustained weakness for Ethereum could have broader implications for the crypto market and the prevailing narrative surrounding the industry’s recovery.
