Eric Wall Explains Reasons Behind ETH/BTC Ratio Collapse

Taproot Wizards co-founder Eric Wall has identified a raft of reasons behind the decline of the ETH/BTC ratio in 2025. The cryptocurrency expert revealed the factors behind the falling ETH/BTC ratio in an X post, hinging the bulk of the blame on Ethereum’s recent price performance.

The ETH/BTC ratio slumped to a five-year low after Ethereum bucked the trend of following Bitcoin on a rally after the halving event. While Bitcoin price rose to cross the $100K mark, Ethereum price has tumbled below $2,000 to reach lows of $1,400.

After the halving event, Bitcoin price went on a tear as it crossed the $100K mark, but Ethereum price has tumbled to lows of $1,400 after struggling to follow through. The dismal performance of the second-largest cryptocurrency has seen the ETH/BTC ratio slump to its lowest level in five years.

As investors try to wrap their heads around the grim metric, Taproot Wizards co-founder Eric Wall has explained the reason behind the steep drop.

Highlighting a competitive landscape that has seen several blockchains launch since Ethereum, the cryptocurrency expert notes that they are vying for market share with the largest altcoin, offering cheaper fees and faster processing times.

“Maybe it's because Ethereum is lagging in a competitive landscape (new chains offering cheaper fees, faster processing times, etc.). It feels like there's less "magic" to the network now than there used to be. It's no coincidence that BTC clocks higher highs in an environment where people are massively oversaturated with blockchain options and yet still prefer to hold the original, apex asset,” said Eric Wall.

The cryptocurrency expert went on to argue that 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 according to Eric Wall, Ethereum does not have a consistent buyer that is tipping the scales in its favor.

“Or maybe it's because Bitcoin has a Saylor-like buyer, while Ethereum doesn't. It feels like people are buying more Bitcoin out of choice, and people are massively over-allocated to ETH out of inertia. As if people are thinking, 'Oh, I should probably buy some more Bitcoin.' But they're not thinking, 'Oh, I should probably buy some more Ethereum.' It feels like there's no urgency to buy more ETH, but there's a clear preference for BTC. People are buying Bitcoin because they want to, but they're buying Ethereum because they feel like they should. That's a big difference and it's impacting the ETH/BTC ratio negatively,” he explained.

In the current macroeconomic climate, Bitcoin and gold have evolved into wartime assets, while ETH is considered a “peacetime asset.” Gold has surged to new highs, sparking optimism that Bitcoin will follow in the same path for a similar rally, but the Ethereum price continues its unimpressive run.

"Bitcoin and gold are going up. People are massively over-allocated to ETH. It feels like people are thinking, 'Oh, I should probably buy some more Bitcoin.' But they're not thinking, 'Oh, I should probably buy some more Ethereum.' It feels like there's no urgency to buy more ETH, but there's a clear preference for BTC. People are buying Bitcoin because they want to, but they're buying Ethereum because they feel like they should. That's a big difference and it's impacting the ETH/BTC ratio negatively," said Eric Wall.

The Merge Is Not Responsible For The Ratio Decline

Highlighting that Ethereum’s Merge event is not responsible for the ETH/BTC slump, as some might assume, Eric Wall stated that the cryptocurrency is struggling to maintain its value in the face of several emerging assets.

However, pseudonymous cryptocurrency analyst Beanie argues that the Merge is the primary reason for the price decline, having anticipated the downturn in January.

"I've been saying since January that the Merge would likely see the ETH/BTC ratio fall. It seems like we're finally getting there. It's interesting to see people discussing it now, though I'm not sure why anyone would be surprised. BTC is performing well, and people are massively over-allocated to ETH. It seems like people are thinking, 'Oh, I should probably buy some more Bitcoin. But they're not thinking, 'Oh, I should probably buy some more Ethereum.' It feels like there's no urgency to buy more ETH, but there's a clear preference for BTC. People are buying Bitcoin because they want to, but they're buying Ethereum because they feel like they should. That's a big difference and it's impacting the ETH/BTC ratio negatively. Also, several new chains are offering cheaper fees and faster processing times than Ethereum,