ETH/BTC Ratio Faces Prolonged Weakness: What It Means for Investors

ETH/BTC Ratio Faces Prolonged Weakness

The Ethereum-to-Bitcoin (ETH/BTC) ratio has struggled significantly, with a staggering 77% of trading days proving unprofitable for ETH holders relative to BTC. Market turbulence has only exacerbated this trend, as reflected in on-chain data and price action charts. But what does this prolonged underperformance mean for traders and investors?

Deciphering the ETH/BTC Profitability Chart

The ETH/BTC profitability chart visually tracks how Ethereum has performed against Bitcoin over time.

• Green zones indicate periods where ETH outperformed BTC.
• Red zones highlight days when ETH lagged behind.
• The orange-shaded section at the bottom represents the rising percentage of unprofitable days.

A closer analysis reveals that since early 2022, Ethereum has consistently underperformed Bitcoin, with only brief periods of profitability.

The latest market downturn in early 2025 has intensified this bearish momentum, pushing the percentage of unprofitable trading days past 77%—a historically significant threshold that signals prolonged ETH weakness against BTC.

ETH/BTC Price Action: A Steady Downtrend and Sharp Rejections

ETH/BTC’s daily price chart highlights extreme volatility, with a recent downward wick underscoring a strong rejection from key resistance levels.

Key observations from price action:

• Daily negative performance bars significantly outnumber positive ones, reinforcing a persistent downtrend.
• Since mid-2024, ETH has struggled to sustain any meaningful recovery against BTC.
• Every attempt to regain momentum has been met with selling pressure, further dragging the ratio lower.

Recently, the ETH/BTC ratio plummeted to a multi-year low, hovering around 0.05 BTC—a crucial psychological and technical support zone.

Why Is Ethereum Struggling Against Bitcoin?

Several factors contribute to Ethereum’s prolonged weakness relative to Bitcoin:

1. Institutional Preference for BTC – Bitcoin remains the primary choice for institutional investors, especially following the approval of spot Bitcoin ETFs in early 2024. As a result, capital continues flowing into BTC rather than Ethereum or other altcoins.
2. Stronger Macro Narrative for Bitcoin – Unlike Ethereum, Bitcoin benefits from macroeconomic trends, positioning itself as a hedge against inflation and economic uncertainty.
3. Limited Impact of Ethereum ETFs – While Ethereum ETFs were also approved, they have failed to attract significant inflows compared to Bitcoin ETFs, highlighting investor skepticism.

What’s Next for ETH/BTC?

With ETH/BTC hovering near a critical support level at 0.05 BTC, the next move will be crucial.

• A decisive break below 0.05 BTC could trigger further declines toward 0.045 BTC or lower, potentially leading to panic selling and liquidations.
• However, a bounce from key support levels is also possible if Ethereum sees renewed institutional interest or a shift in market sentiment.

For now, the trend remains decisively bearish, and ETH holders should closely monitor price action at these critical levels.