In April 2025, the Ethereum to Bitcoin ratio dropped significantly due to the lack of institutional support for Ethereum compared to Bitcoin, indicating a shift in market dynamics.
Sharp Decline in ETH/BTC Ratio
The ETH/BTC ratio fell to 0.01787, the lowest level since 2020, driven by consistent support for Bitcoin from major financial backers.
Absence of Large Buyers for Ethereum
Eric Wall noted that the lack of consistent buyers for ETH influences the ETH/BTC ratio. Significant Bitcoin purchases by Michael Saylor exemplify the type of support Ethereum currently lacks. As Eric Wall stated, “The absence of a Saylor-like buyer for ETH is playing its role in the decline of the ETH/BTC ratio. Michael Saylor’s BTC purchases have contributed to the asset’s performance, but Ethereum does not have a consistent buyer.”
Market Impact and Ethereum's Future
The decline in the ETH/BTC ratio is impacting Ethereum’s market position. Bitcoin is buoyed by its narrative of increasing dominance as ‘digital gold’. As Layer-2 solutions progress, Ethereum experiences reduced on-chain activity, pressuring its relative valuation. Regulatory uncertainties also negatively influence institutional sentiment, impeding potential ETF approvals and institutional expansion into Ethereum.
In conclusion, Ethereum faces challenges compared to Bitcoin, and despite some historical instances of recoveries, the current market state raises concerns regarding its future prospects.
