Ethereum's price shows a downturn compared to Bitcoin. Experts assess the potential for future recovery.
Current Market Situation
Ethereum's price performance against Bitcoin has declined over the past two years. In 2021-2022, its price showed significant growth driven by speculative interest and high derivatives market activity. However, since 2023, Ethereum's value has decreased relative to Bitcoin. Both the market open interest ratio and price ratio reached new lows in March 2025, at 0.15 and 0.02, respectively. Market expectations for the ETH/BTC pair remain mostly negative.
Possibility of Rebound
Despite a prolonged decline, there remains a potential for unexpected price rebounds amidst market uncertainty. Analysts predict Ethereum might reach its 2021-2022 price levels if certain market conditions reappear. Previous market cycles have often exhibited rapid rebound movements, suggesting that if Ethereum confidence grows, it could herald a recovery trend.
Ethereum Gas Fees Drop After Dencun Upgrade
The Dencun upgrade, introduced on March 13, 2024, led to a 95% reduction in Ethereum gas fees. Enhancements included improvements on both the execution and consensus layers, along with changes in nine Ethereum Improvement Proposals (EIPs). YCharts data show that the average fee fell from 72 gwei to 2.7 gwei from 2024 to March 2025. The cost of an average swap is now only $0.39, and NFT sales costs amount to $0.65.
While Ethereum's price relative to Bitcoin is declining, reduced gas fees and potential market shifts could spearhead a recovery.
