There’s a noticeable contrast in recent performance between Bitcoin (BTC) and Ethereum (ETH), the two giants of the cryptocurrency market. While Bitcoin has shown a promising recovery, increasing by 3.8% in the past fortnight and reclaiming the $85,000 price level, Ethereum is lagging behind.
Ethereum continues to struggle beneath the $2,000 mark, a level it dropped below last week, and is currently hovering just over $1,900. This divergence in performance between Bitcoin and Ethereum has piqued the curiosity of analysts, particularly in light of Ethereum’s diminishing strength against Bitcoin in the derivatives market.
Ethereum’s Waning Strength Against Bitcoin: A Look at Market Trends
CryptoQuant analyst SunflowrQuant recently examined the ETH/BTC market trends, observing that Ethereum has weakened relative to Bitcoin over the past two years, indicating a decline in investor confidence and waning speculative interest in ETH derivatives.
Per SunflowrQuant’s analysis, Ethereum had a strong showing against Bitcoin during the 2021-2022 period, indicating robust market interest and heightened activity in Ethereum-based derivatives. However, the ETH/BTC ratio and open interest have since declined, implying that Ethereum is losing its market dominance to Bitcoin.
By March 2025, the open interest ratio of ETH futures had slumped to 0.15, while the ETH/BTC price ratio fell to 0.02. This trend suggests that the bearish sentiment towards Ethereum is prevalent as traders and investors shift their focus towards Bitcoin. The falling open interest in Ethereum perpetual futures contracts further underscores the notion of decreasing speculative interest in ETH compared to BTC.
Implications for Ethereum’s Future
Despite Ethereum’s underperformance, SunflowrQuant suggests that the current weakness may be indicative of broader market fear and uncertainty. The analyst points out that emotions often dictate the crypto markets, and when sentiment hits rock bottom, a swift recovery is often on the horizon.
Such conditions of low liquidity can trigger unpredictable price movements, providing an opportunity for Ethereum to regain its strength in the ETH/BTC ratio. Historically, market lows have been followed by periods of robust recovery, and Ethereum’s fundamentals remain sound. The analyst noted:
“Emotional fluctuations and market fear could prompt investors to adopt a more cautious and strategic approach. Ethereum might be at the cusp of a new era; just like in past cycles, following challenging times, a substantial rebound might occur, reaching new peaks.”
If investor confidence resurfaces, Ethereum could potentially reverse its trend, emulating its performance against Bitcoin in 2021-2022. However, this will likely hinge on broader market dynamics, including institutional adoption, Ethereum’s network upgrades, and Bitcoin’s price stability. SunflowrQuant concluded:
“Examining Ethereum’s price variations, now could be an opportune time to participate in this transformative journey. We are at the nadir of potential new beginnings and opportunities for Ethereum.”
