Ethereum (ETH) has seen a significant decrease in market share, dropping to record lows of 7% in 2020. Analysts are projecting a possible 20% recovery in the next two weeks. The altcoin’s market share reached a peak of 22% during the 2021 bull cycle but has since declined to its current low levels. This decline in market size has been attributed to tariff uncertainty and a negative sentiment towards ETH.
The ETH/BTC ratio has also decreased by 77% over the same period, reaching a 5-year low of 0.018. This decline is significant, as Bitcoin has outperformed Ethereum during this time. The shift from Proof-of-Work to Proof-of-Stake has also played a role in the decline of the ETH/BTC ratio.
In addition to the decrease in market share and ETH/BTC ratio, Ethereum’s value has dropped by 64% from over $4K to $1.5K. This bearish sentiment has affected both the retail market and institutional investors, with weak demand for ETH ETFs in Q1 2025. Despite this negative sentiment, Ethereum has upcoming upgrades such as Pectra and Fusaka aimed at improving transaction speeds to compete with rivals like Solana.
One potential positive catalyst for Ethereum could be the approval of staking on ETH ETFs, with a key deadline approaching in June. Trader Michael van de Poppe believes that ETH could see a 20% increase by the end of April or early May, citing oversold conditions on the weekly chart as a potential signal for a reversal. Despite the current challenges facing Ethereum, there is optimism for a possible recovery in the near future.
