The second-largest cryptocurrency, ethereum (ETH), dipped to $1,809 on Monday, hitting a notable low. Meanwhile, the BTC/ETH ratio slipped under 0.24, a level not seen since February 2020.
Bitcoin-Ether Ratio Taps Multi-Year Lows
Ethereum is down 8% at the time of writing over the last day, and earlier it down 10% against the U.S. dollar before rebounding. Presently, the crypto asset is coasting along at $1,859 per coin with a market cap of around $231. It stands at 8.8% of the entire $2.56 trillion crypto economy today.
ETH/USD via Deribit 1H chart.
The drop in the levels relative value of bitcoin not seen since February 2020, shines a light on ethereum’s recent struggles. This shift could stem from changing investor moods or broader economic forces at play, but this has been a recurring theme over the past year. When it comes to performance, ethereum has simply been, well, less than stellar.
During this 12-month period, investors have leaned heavily into bitcoin’s dominance, often sidelining ethereum’s utility-focused charm. Adding to the mix, solana (SOL) has also caught their eye. This shift highlights a clear preference for bitcoin’s stability and solana’s potential, leaving ethereum to navigate a more challenging path.
Ethereum’s stumble—plunging to multi-year lows against bitcoin—paints a vivid picture of its rocky journey. While bitcoin’s steadiness steals the spotlight, ETH struggles to garner attention, and lately, that attention has been lacking. With shifting tides in crypto appetites and economic headwinds, Ethereum‘s path forward hinges on reigniting faith in its technology amid a race where rivals are sprinting ahead. Game on?
