Ethereum is experiencing a significant decline in value against Bitcoin, a development that raises concerns within the market. One ETH currently equals approximately 0.02191 BTC, marking its lowest level since May 2020.
ETH/BTC Ratio Hits a 5-Year Low
Ethereum’s weak performance against Bitcoin has become a critical indicator for market observers. Since the beginning of 2025, Ethereum has lost about 40% of its value relative to Bitcoin. This translates into a significant shift in ETH/BTC trading, indicating a change in altcoin market perception. The decline in the ETH/BTC ratio is attributed more to Bitcoin’s increasing dominance than to Ethereum’s internal technical updates.
Bitcoin Halving Fails to Repeat Historical Trends
The recent Bitcoin block reward halving in April 2024, which previously had a positive impact on Ethereum, has taken a different turn this time. Expected growth for ETH post-halving did not materialize. A gap exceeding 50% in the ETH/BTC ratio indicates a market trend shift. This also suggests the emergence of new Layer-1 projects capable of competing with Ethereum, such as Solana.
Solana’s Rise Pushes ETH to the Background
Solana's performance in 2024 has drawn attention to its competition with Ethereum. SOL's value increase is linked to faster transaction times and lower costs, making the platform appealing to investors. While Ethereum loses ground, Solana continues to gain attention in the market, especially in the NFT and DeFi spaces.
Despite these shifts, Ethereum remains a significant market player. However, the notable loss in value against Bitcoin prompts investors to rethink their strategies amid the changing market landscape.
