Ethereum Price Suffers 77% Crash Against Bitcoin, On-Chain Deep Dive Reveals Reasons Why

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Despite rolling retired a ample fig of upgrades and innovations, the Ethereum terms continues to lag down Bitcoin (BTC) by a wide margin. Reports uncover that ETH has suffered a staggering 77% terms clang against BTC — a diminution apt fueled by a premix of technical, macro, and sentiment-driven factors. Notably, On-chain analytics platform, Santiment has present pinpointed and breached down the cardinal reasons down these terms struggles.

Ethereum Price Nosedives Against Bitcoin

On April 11, Santiment released a elaborate report connected Ethereum, highlighting its almost four-year underperformance and the reasons down it. Ethereum, erstwhile revered arsenic the cryptocurrency astir apt to dethrone Bitcoin, has precocious suffered a brutal terms decline erstwhile measured straight against BTC.

According to Santiment’s on-chain data, Ethereum has crashed by astir 77% against Bitcoin since December 2021. While the dollar worth of ETH hasn’t wholly collapsed, particularly compared to different altcoins, the semipermanent BTC/ETH ratio inactive paints a gruesome representation for Ethereum holders.

Notably, Ethereum has besides failed to retrieve anywhere adjacent its November 2021 all-time precocious of $4,760. In contrast, Bitcoin has surged ahead, reclaiming overmuch of its marketplace dominance and outpacing ETH crossed astir each timeframe.

This disparity has led galore traders and erstwhile maximalists to comparison ETH to a “shitcoin.” Even worse, assorted mid to low-cap altcoins person already outperformed Ethereum implicit the short, mid, and semipermanent timeframes, causing further embarrassment for the world’s second-largest cryptocurrency by marketplace capitalization. Based connected Santiment’s report, the ETH/BTC terms ratio illustration alone is capable to trigger uncertainty and uncertainty among long-term holders.

Behind The Scenes Of Ethereum Price Struggles

Beyond terms enactment and market volatility, Santiment reveals that determination are cardinal reasons for Ethereum’s sluggish performance implicit the years. Some of the large criticisms that analysts and traders person pinpointed see technical, sentimental, and regulatory issues.

Ironically, Ethereum’s Layer 2 solutions are 1 of the cardinal drivers of its underperformance. L2 solutions similar Arbitrum, Optimism, and zkSync are reportedly cannibalizing enactment connected the mainnet, taking investments from ETH portion spreading capitalist attraction thin.

Secondly, Ethereum seems to conflict with analyzable roadmaps and communication, which has led to capitalist confusion. Major updates similar The Merge and Shanghai person been hard for investors to comprehend, making ETH consciousness little accessible than BTC.

Thirdly, users stay frustrated by Ethereum’s comparatively high state fees and the dilatory rollout of cardinal upgrades. This has pushed them toward much affordable and faster alternatives, importantly reducing adoption.

Another superior crushed for Ethereum’s clang against Bitcoin is ongoing regulatory concerns. Unlike Bitcoin, which has a much established ineligible precedent, Ethereum faces changeless uncertainty astir whether it could beryllium labeled a security.

Other points see ETH’s deficiency of concern appeal. While Bitcoin maintains the rubric arsenic a stable integer gold, Ethereum appears to beryllium caught successful between, having nary wide oregon charismatic concern narrative. Moreover, newer blockchains similar Solana and Cardano are besides attracting a important fig of users with cheaper and faster solutions, yet pulling investments distant from ETH.

The last crushed Santiment has identified for Ethereum’s semipermanent terms descent is rising selling pressure. Post-upgrade withdrawals of stakes ETHs person created dependable sell-side pressure, limiting maturation and momentum compared to Bitcoin.