Ether (ETH) Price Continues to Struggle Against Bitcoin (BTC), Threatening More Downside

With Bitcoin (BTC) currently at 59.19% could this be the local bottom for Ether (ETH) or will it keep losing market share against BTC?

Ether (ETH) price continues to struggle, particularly against Bitcoin, threatening more potential downside for the world’s second-largest cryptocurrency.

With Bitcoin (BTC) currently at 59.19% could this be the local bottom for Ether (ETH) or will it keep losing market share against BTC?

ETH/BTC Hits New 4-Year Low H2

Ether’s price against Bitcoin has hit a four-year low last seen in December 2020, as the world’s largest altcoin extended losses against its larger rival.

One ETH dropped to 0.024 BTC on Sunday March 3, 50% down over the last 12 months, as US President Donald Trump’s trade measures continue to rattle the market. The ETH/BTC ratio peaked at 0.081 in December 2021.

ETH/BTC Weekly Chart. Source: TradingView

“Ethereum's underperformance against Bitcoin, reflected in the ETH/BTC ratio hitting a four-year low, is driven by Bitcoin's institutional dominance,” said Chief Analyst Ryan Lee at Bitget Research.

According to Lee, lack of a clear narrative for Ethereum and “weaker network activity, and a shift in speculative interest toward other altcoins threatens further downside for the coin.

“This trend may persist in the near term as Bitcoin maintains its momentum and Ethereum faces competitive challenges.”

Strategy founder Michael Saylor believes that Ether’s weakness is a result of people rotating their capital into Bitcoin as “real sound money.”

Trump’s ETH Accumulation Does Little to Boost Ether’s Price

Donald Trump’s World Liberty Financial (WLF) has aggressively accumulated ETH, amassing over 86,000 ETH valued at roughly $421 million by the time of his inauguration last January 20.

Despite this significant buying spree, ETH’s price has stubbornly underperformed Bitcoin, hovering around $2,000 as of March 10, 2025.

Several factors explain this lack of impact. Firstly, the broader crypto market has been dominated by Bitcoin’s surge, fuelled by its "digital gold” narrative and $35 billion flows into spot Bitcoin ETFs since their launch on Jan. 11, 2024. This overshadows Ethereum’s $2.6 billion ETF performance since its launch in July 2024.

Bitcoin vs. Ethereum ETF flows. Source: Farside Investors

Secondly, Ethereum faces internal challenges: an inflationary supply post-Merge (up 5.4% since February 2024), delayed upgrades like Pectra, and competition from faster blockchains like Solana, which dilute its appeal.

WLF’s purchases, while substantial—peaking at $340 million in net inflows by February—represent a small fraction of ETH’s $260 billion market cap, limiting their ability to move the needle. In addition, WLF’s subsequent transfers of ETH to exchanges like Coinbase Prime (e.g., $175 million in February) signal potential selling pressure, offsetting bullish sentiment.

Moreover, the recent excitement about the White House’s inaugural Crypto Summit on March 7 and optimism about Ether’s potential inclusion in a US strategic crypto reserve have quickly faded.

Despite initial enthusiasm, Trump’s Working Group on Digital Assets clarified that the mentioned cryptocurrencies, namely Ethereum, Solana (SOL), Cardano (ADA), and Ripple (XRP), were merely illustrative examples and not official selections for the US strategic crypto reserve.

Furthermore, available reports indicate that the US government holds minimal amounts of ETH in contrast to BTC. The reported figures suggest holdings ranging from around 50,000 ETH (approximately $117.8 million in August 2024) to as high as 200,000 ETH (roughly $710 million as of early March 2025), whereas the US is seen favouring Bitcoin with the recent announcement of a Strategic Bitcoin Reserve and an estimated $17.7 billion in BTC holdings.

It was recently revealed that Trump’s broader stockpile strategy, focused on altcoins, is winding down with no new purchases being made. This revelation had an immediate impact, triggering a 15% decline in Ether’s price.

Therefore, unless a strong Ethereum-specific catalyst emerges or there's a shift in market dynamics, WLF’s accumulation, although noteworthy, might not be enough to counter these headwinds and propel ETH's price upwards despite the significant sums involved.

Key Ether Price Levels to Watch

Ethereum breached the $3,000 level in November 2024 before retracing to the current levels just above $2,000. Traders are now focused on key areas around this level, which ETH price might revisit soon.

Notably:

ETH/USD weekly chart