ETH/BTC ratio hits 5-year low as Ethereum below $1,600?

Ethereum quickly loses ground against Bitcoin, the ETH / BTC ratio falling at its lowest level in five years.

According to Coingecko dataThe ETH / BTC ratio now amounts to 0.01787, a level not seen since January 2020. The sharp decline reflects ethereum (Ethn) underperformance in progress compared to bitcoin (BTC). In the past 24 hours, the report has dropped by almost 5%. It is down 24% in the last month and fell by 67% in the past year.

This divergence drew the attention of investors. In the past year, Bitcoin has increased by around 34%, while Ethereum has lost 50% of its value. The market seems to promote the position of Bitcoin as a reserve of value, while Ethereum has trouble maintaining the interest of investors.

Despite the recent progress Like Dencun upgrade, Ethereum’s main measures have dropped. Network fees fell on multi -year stockings, decentralized financial activity has decreased and faster channels like Solana (GROUND) and the BNB channel (Bnb) attract new liquidity at the expense of Ethereum.

There were drawbacks with the approach of scaling based on Ethereum Rollup. Mainet d’Ethereum has lived diminished Activity and expense income because more users switch to sleep-2s like the base and the arbitrum (ARB). Although the Layer-2 promotes scalability, they have had a short-term negative effect on the action of ETH prices. The absence of fresh catalysts and regulatory uncertainty also affected the feeling.

From a technical point of view, ETH is negotiated at $ 1,587 from press time. The relative force index oscillates just over 40, leaning more towards neutral territory. If the bulls can recover the mobile average of 20 days almost $ 1,618 and exceed $ 1,650, the short -term momentum can change increases.

A decisive movement above $ 1,700 would open the door to a rally to $ 1,850. Lowering, not staying above $ 1,550 support can drop $ 1,440. Ethereum still plays a major role in the crypto ecosystem, but its weakness Against Bitcoin raises doubts about the speed with which ETH bulls can resume momentum.