Bitcoin’s been on a bit of a roll lately, climbing back above $85,000 after a recent surge. But Ethereum? Not so much. It’s stuck below $2,000, and the gap between these two crypto giants is raising some eyebrows.
Ethereum’s Struggle
The difference in performance is pretty striking. While Bitcoin gained almost 4% in the last two weeks, Ethereum’s been lagging. Analysts are noticing a weakening of Ethereum against Bitcoin, especially in the derivatives market.
What the Data Shows
One analyst, SunflowrQuant, looked at the ETH/BTC ratio over the past couple of years. They found that while Ethereum outperformed Bitcoin in 2021-2022 (showing strong investor interest), that trend has reversed. The ratio and open interest in Ethereum derivatives have both dropped significantly. By March 2025, the open interest in ETH futures was down to a measly 0.15, and the ETH/BTC price ratio had plummeted to 0.02. This suggests less speculative trading activity in Ethereum compared to Bitcoin.
A Potential Turning Point?
Despite the current slump, SunflowrQuant isn’t entirely bearish on Ethereum. They argue that the low market sentiment might actually be a good thing. Extreme fear often precedes a market rebound. The low liquidity could lead to some surprising price swings, potentially giving Ethereum a chance to catch up to Bitcoin. Plus, Ethereum’s underlying technology is still strong.
The analyst believes that we might be seeing the start of a new cycle for Ethereum. Just like before, a period of struggle could be followed by a significant recovery. However, this recovery will likely depend on a number of factors, including wider market trends, more institutional investment, Ethereum network upgrades, and Bitcoin’s price stability.
The Bottom Line
The analyst’s overall message is cautiously optimistic. While Ethereum is currently facing headwinds, the current low point could present a good opportunity for long-term investors. The future remains uncertain, but the potential for growth is still there.
