Ethereum (ETH) Faces Numerous Issues That Are Biting into Its Value and Profitability

Ethereum, the second-largest cryptocurrency by market capitalization, faces numerous issues that are biting into its value and profitability.

In the ever-shifting landscape of cryptocurrencies, Ethereum (ETH), the second-largest digital asset by market capitalization, has been encountering several issues that are impacting its value and profitability.

As the cryptocurrency market continues to recover from the lows of 2024, many coins have seen their prices rise rapidly. However, even at a price point of $1,900, only 47% of Ethereum (ETH) holders can say that they’re in the green with their investment; a stark contrast to Bitcoin (BTC), which is not only worth more but also worth more compared to its price point at the same time last year.

The majority of TRX, OM, BGB, and BTC holders are also seeing gains in their portfolios.

Source: CryptoRank

The biggest problem with Ethereum right now appears to be the aforementioned price slide, which is not just driven by the overall crypto market downturn but also by the consistent underperformance of Ethereum itself. Relative to other major coins like Bitcoin, most of whose holders are in profit, a large portion of Ethereum addresses are in the red at the current price.

This is in part due to the fact that Ethereum’s price has been much less stable than that of other top cryptocurrencies.

At the beginning of 2024, the price of Bitcoin was around $16,000. At the same time, the price of Ethereum was around $1,300. A year later, in December 2024, Bitcoin had risen to $110,000, while the price of Ethereum had dropped to $900—a decline of around 30% from June 2024.

This stark difference in price performance can be attributed to several factors. Firstly, Bitcoin experienced a steeper decline during the cryptocurrency winter of 2024, falling from highs of around $69,000 to lows of around $15,000. In contrast, Ethereum’s price remained relatively stable throughout the downturn.

Secondly, Bitcoin experienced a more rapid recovery from the lows of 2024, rising to hit new all-time highs. In comparison, Ethereum’s price recovery was slower and less pronounced.

Finally, the narrative around Bitcoin and Ethereum has also shifted. Earlier in 2024, there was a strong focus on emerging trends in the cryptocurrency market, such as memecoins and AI applications. However, in 2025, the conversation has shifted to a broader discussion of the cryptocurrency landscape, encompassing topics like blockchain technology, decentralized finance (DeFi), and the regulatory environment.

This shift in narrative might be related to the fact that emerging trends are largely being used by new crypto projects, while established cryptocurrencies like Bitcoin and Ethereum are struggling to capitalize on them. For instance, despite the widespread popularity of memecoins among traders, neither Bitcoin nor Ethereum have launched any such tokens.

Rising Competition and Internal Struggles

Ethereum is also facing an intensifying rivalry from other blockchain platforms, with Solana emerging as a key competitor. Solana is scoring successes with major decentralized finance (DeFi) projects and has surpassed Ethereum in some key performance indicators, including volume and fees in decentralized exchanges (DEXs).

Solana’s technical performance makes it a serious challenger to Ethereum, with its ability to scale with lower transaction costs and a growing ecosystem of projects.

Meanwhile, internal problems with the Ethereum Foundation have also raised questions about the long-term prospects for the network. The foundation has experienced several reorganizations, and disputes among its leaders have affected the network’s development.

Although the change from Ethereum 1.0 to Ethereum 2.0 is a substantial move toward scalability, critics question whether the foundation’s continued internal strife might prevent Ethereum from making any long-term, transformative innovations and from delivering on its ‘grand vision.’

Seeing how Ethereum overcomes these challenges, or whether it does at all, might tell us a lot about the foundation’s leadership and Ethereum’s future.

Ethereum ETF Outflows: A Sign of Waning Confidence

On March 10, Ethereum spot ETFs experienced net outflows of $37.527 million—marking the fourth consecutive day of outflows from the product. These not-so-sustained withdrawals are another indicator that investor confidence in Ethereum is heading south.

Spot ETFs are a typical, popular investment vehicle for institutional investors seeking cryptocurrency market exposure. However, the continued outflows from the Ethereum spot ETF suggest that institutional investors might be losing faith in the second-largest cryptocurrency’s ability to deliver strong returns.

On March 10 (EST), Ethereum spot ETFs recorded a total net outflow of $37.527 million, marking the fourth consecutive day of net outflows.

Meanwhile, Bitcoin spot ETFs saw a total net outflow of $369 million, extending their six-day streak of net outflows.

The outflows from Ethereum ETFs show