Ethereum (ETH) is facing challenges as it seeks to bounce back from a tough year in which it recorded one of its lowest performances compared to other major cryptocurrencies, dropping by almost 50% in 2025. While there are some positive signs like the RSI showing improvement and hints of a potential breakout from the EMA lines, Ethereum is still trailing behind competitors such as Solana in various aspects.
Institutional selling has caused the ETH/BTC ratio to drop to its lowest levels in a long time. As Ethereum approaches significant resistance levels, opinions in the market are divided, with some bullish on the possibility of a breakthrough while skeptics question the long-term relevance of the blockchain.
Ethereum has emerged as the poorest-performing major cryptocurrency in 2025, with a decline of nearly 51% year-to-date. This performance lags significantly behind other cryptocurrencies like Bitcoin, Solana, BNB, and even XRP which has seen some positive growth.
The increasing dominance of alternative chains like Solana and Base has raised concerns about Ethereum's future. Solana is excelling in key metrics such as DEX volume, apps revenue, and user engagement, while Base is attracting interest from developers. These advancements are challenging Ethereum's position in the market.
The decline in the ETH/BTC ratio to 0.01791, the lowest since 2020, highlights Ethereum's decreasing value compared to Bitcoin. Institutional sell-offs from firms like Galaxy Digital, the Ethereum Foundation, and Paradigm have contributed to investor concerns. Additionally, low staking rates and Bitcoin's increasing influence are redirecting capital and market sentiment away from Ethereum.
Ethereum is showing some signs of recovery, with the RSI climbing to 57.26, indicating a positive short-term momentum. However, sustained breakout or overbought conditions have yet to be observed, suggesting cautious optimism among buyers. The proximity of short-term EMAs to longer-term ones further supports a bullish outlook.
While Ethereum faces resistance at $1,669 and the market questions its future, a successful breakout could help regain investor confidence in a challenging year for ETH. Failure to maintain upward momentum could lead to a retest of support levels at $1,535, potentially signaling a bearish trend and casting doubts on Ethereum's competitive position against faster and cheaper alternatives.