Etherum’s chart looks “catastrophic” – and the ratio of ETE / BTC only confirmed it

Can Etrum still claim that the dominance of L1 as Solana received ground floor and collisions of ETI / BTC ratio below 0.022?

ETH / BTC Guess a Middle Low

Ethereum (El), the second largest world crypt in the marketfaces a slipping reality check. The ETE / BTC relationship, a metric used to change Ethereum strength in relation to bitcoin (Btc), fell to 0.022, the lowest level since December 2020. years, signals a sharp drop in Etherum relative performance.

Since September 2022. year, when the ratio was hovering about 0.085, Etherum shed more than 73% of its value in relation to Bitcoin. Of this writing, ET ETH trades about $ 1,880, at 9% in the past week and steep 62% of their all times of $ 4,890 in November 2021. Years.

Compared to Bitcoin, which is only 10% to date, trading at levels of $ 84,300, a 46% drop in the same time frame is more than four times deeper.

The decline in decreases reflects the dominance of Ethereum that is slipping in the smart contract and a layer 1 ecosystem, space that once ruled incompetently.

Like L1 as Solana (Salt), Binance chain (Bnb), Avalanche (Avaq), and others get the country, and the Bitcoin reaffirms her dominance, Etherem seems to tread water.

Let’s look closer what does this imbalance lead, whether Etherum is really losing and what it means for the future L1 hi Race.

Etherum metrics show softening signs

From 1. April, Etherum’s Total locked value The stand is about $ 50.5 billion, which makes up 52.5% of the total market. This means a significant decline from 61.64% in February 2024, pointing to a gradual loss of share in a decentralized finance market.

Part of this shift can be monitored to the rise of competitors such as Solana, which significantly increased his TVL. The share of Solana increased from 2.84% to 7.24%, bringing its total TVL to 6.69 billion dollars, more than 2.5K growth in just more than a year.

One trend in emerging is a difference in user behavior over networks. Etherum continues to attract users involved in passive definition activities, such as agriculture and which will be advocated.

In contrast, Solana Ecosystem draws more speculative, active traders, especially within Meme and frequency definition, suggesting that existing cases of Etherum, while robust, cannot be harmonized where the retail activity is currently trend.

Meanwhile, high gas fees, historically is one of Ethereum’s largest barriers, improved. Average gas prices fell on 1.12 Gwei In March 2025. Significant lower than they were seen in previous years.

But despite these improvements, Etrereum remains relatively expensive and slower to be used compared to newer chains, especially for users who make fewer transactions.

In the middle of that, while Bitcoin ETFS To date, they attracted more than 36 billion dollars net inflows, Etherum Etfs have fought to attract attention. Only in March 2025. years, net total flows in ETH ETFS fell by 9.8%, fall to $ 2.43 billion.

To the side of trade, it seems to feel about Ethereum. According to Kobeissi, a short positioning in Ethereum increased by 40% in early February and increased by over 500% from November 2024. years, marking an unprecedented level of medvest.

Meanwhile, Etherum’s total market domination has now fallen below 8.4%, the lowest level in more than four years. As MilocRedit, the CRIPTO mortgage company, this suggests that capital passes from ETE and to other options, including Bitcoin, Solana and emerging platforms and inserted layers that are capitalized in slowing down Ethereum.

Trade Tranance Suching Scalability

For years, Etherum growth narrative is a joint on a promise for scaling. However, in early 2025. year, that promise remains largely unfulfilled in the basic layer. Despite multiple upgrades, Etherum’s Mainernet still deals with 10 to 62 transactions per second.

At the time of writing, its effective flow floating around 16 transactions per second – figure standing in sharp Opposite for Solane’s 4,322 TPS. This has become a key reason why newer users and applications choose to build elsewhere.

Switching to the share over the connection in 2022. years has significantly improved energy efficiency of Ethereum, cutting energy use by over 99%. However, it was little to solve restrictions on the basic bandwidth of the network.

As a result, Etherum has increasingly relied on layers-2 maltresses like arbitrums (Bow), Optimism (Wash) and Base to scale their operations. These networks expand Etherum’s ability to process transactions outside the chain and setting them back to Majnet.

Although the L-2 adopted decreased by the beneficiary costs, it also led to unintentional consequences. The activity is transferred from Etherum Majnet, which will attract users and transaction fees according to L-2 ecosystems.

As one user noted, “arbitruum and optimism face fees … while the base layer of Ethereum turned into a ghost city.”

This trend is supported by data. Analysts like Geoff Kendrick on Standard Chartered debate that L2, especially high saints as a basebase base, siphoning billions in transaction fees that would otherwise be flow Through Etherum’s Mainnet.

Kendrick estimates that the base itself has removed about $ 50 billion in the value of Etherum market cap by foling economic activity. In turn, it reduces the amount of Etela that was burned through gas fees, weakening its deflationary mechanics and long-term narrative of ethics as “ultrasonic money”.

After the EIP-1559, an ETHERE mechanism is expected to ignite compensation for balances. However, with activities now fragmented over tens of pods and sidehains, the total fee of Padovala have declined significantly.

ET is once again become Net inflationary, now at an annual rate of 0.5%. Meanwhile, putting yields fell below 2.5%, making an ethi less attractive compared to Stablecoin strategies that offer a return over 4.5% through operating platforms.

Even Etherum’s Upcoming Upgrading, Pectra – designed to improve efficiency L2 by increasing MLOB capacity of three to six data availability will not do much.

Kendrick said he did not expect Pectra to reverse the wider decline in ETH / BTC, calling for insufficient to solve Etherum’s basic structural issues.

At the same time, the activity at Etherum Mainet seems to dry. Bots, especially address bot poisoning, are now dominated in gas use on top contracts. Less organic applications are distributed directly to Mainet.

As one user put, “ET Mainnet becomes a cemetery.” Although this can be exaggeration, Etherum’s core layer loses its reputation as a basic destination for innovation on the chain.

Etherem Prices: Is the bottom inside?

Several signals from market analysts indicate a wide range of possible outcomes, but risks agree faster for ETH from potential caral centuries.

At the Macro Front, Ethers remain largely related to a wide environment for the richness of risk. According to Bloomberg Mike McGlone Strategy, “remains closely related to risky means”, which means that its effect will probably reflect that from American capital and high-floor sectors.

If large markets are further declined in 2025 years, especially below weight High interest rates, permanent inflation or weakening of global growth, Etherum could face intensified pressure.

McGlone warned that in the exacerbation of the macro environment, ET Mai “would potentially revise the level of $ 1,000”, which would decrease nearly 50 percent from current levels.

From the technical point of view, the price structure also shows signs of strain. Analyst Mags noted that Etherum has “one of the worst graphs of all time,” pointing to repeated omissions to break on the resistance zone to $ 4,000 during this cycle.

After three attempts, ET not only failed to regain its high, but also lost support at the mid-range and fell under the trends upwards, which held before the bottom before the previous market.

This type of fault, combined with a lack of powerful support below the current level, opens the ability to repeat nearby nearby $ 1,060 – the last price that has passed during the 13022 market. Years. Since Mags noted, “Technically, the bear scenario looks more likely.”

However, an optimistic perspective arrived from Michael Van de Poppe merchant, which noted that Ethers could show the early signs of potential “deviation”.

According to him, if ETH can be cleaned over $ 2,100 to $ 2,150, it could go to a sharp stroke up to $ 2,800, indicating restored power on the market.

He also stressed the recent decline in the American dollar index as a favorable macro signal, suggesting that the weaker dollar could help support the kick to K2.

However, these bull scenarios depend on the ethereum of returning key technical levels and a wider market feeling that is convertible. Until then, the risks will go down and remain more visible.

In the short term, Etherum’s Toll appears closely related to macroeconomic cycles and positioning of bitcoin. The determined move above $ 2,150 could mark the start of the recovery phase. Without this, however, technical and structural pressure will probably persevere.

Trade Carefully and never invest more than you can afford to lose.