Ethereum’s native token, Ether (ETH), recently fell below its longest-standing support level against Bitcoin (BTC), prompting top analysts to suggest it is “dying a slow death.”
Ether breaks key support level
The ETH/BTC pair has slipped below the ascending trendline support that has marked market bottoms since 2016.
This trendline previously triggered notable rebounds, including a 300% rise between December 2020 and December 2021 and an 1,800% surge between January 2017 and May 2017.
However, in November 2024, Ethereum bulls failed to hold the support, with ETH/BTC dropping about 15% below it amid increased trading volumes.
In technical analysis, losing a major support level—especially with rising trading activity—signals strong selling pressure, indicating ETH/BTC may face further declines.
“Ethereum is dying a slow death,” commented Tuur Demeester, founder of Bitcoin hedge fund Adamant Capital.
Market factors favor Bitcoin
In 2024, ETH/BTC underperformed primarily due to the launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S., which overshadowed Ethereum’s own spot ETF performance.
Additionally, Bitcoin’s fourth halving in April 2024 enhanced its appeal among both retail and institutional investors, leading to a capital shift away from Ethereum and into Bitcoin.
Ethereum also faced stiff competition from Solana (SOL), a rising smart contract platform.
Since December 2022, the SOL/ETH pair has surged over 925%, further eroding Ethereum’s market position.
Declining dominance
Ethereum also missed key narratives, such as Donald Trump’s election campaign hinting at making Bitcoin a U.S. strategic reserve asset, with no mention of Ethereum.
These combined factors have contributed to a significant decline in Ethereum’s market dominance (ETH.D), which is now at its lowest level since April 2021.
