Ethereum Struggles Below $2K as Bitcoin Recovers - Can ETH Catch Up?

While Bitcoin Rebounds Above $85K, Ethereum Faces Pressure - Will It Turn the Tide?

The cryptocurrency market is witnessing a sharp contrast between its two biggest players: Bitcoin (BTC) and Ethereum (ETH). While Bitcoin has staged a comeback, climbing 3.8% over the past two weeks and reclaiming the $85,000 mark, Ethereum remains stuck below $2,000, currently hovering around $1,900.

This performance gap has sparked discussions among analysts, particularly regarding Ethereum’s weakening position against Bitcoin in the derivatives market.

Ethereum’s Decline Against Bitcoin: What’s Happening?

According to CryptoQuant analyst SunflowrQuant, Ethereum has been losing ground to Bitcoin for the past two years, with investors showing declining confidence in ETH. Back in 2021 and 2022, Ethereum outperformed Bitcoin, fueled by strong market interest and heightened speculative activity in ETH derivatives. However, that momentum has since faded.

ETH/BTC Open Interest and Price Ratio

By March 2025, the open interest ratio of ETH futures had dropped to 0.15, while the ETH/BTC price ratio sank to 0.02. This decline suggests that traders are shifting their focus away from Ethereum, favoring Bitcoin instead. The reduced open interest in Ethereum perpetual futures contracts further reinforces this bearish sentiment, signaling weaker speculative demand for ETH compared to BTC.

Could Ethereum Be Poised for a Rebound?

Despite Ethereum’s struggles, SunflowrQuant suggests that this downturn might be setting the stage for a potential recovery. Crypto markets are often driven by sentiment, and extreme bearish conditions can sometimes trigger sharp rebounds.

Periods of low liquidity and heightened fear often create unexpected price swings, which could give Ethereum the opportunity to regain strength against Bitcoin. Historically, major downturns in ETH have been followed by strong recoveries, and Ethereum’s fundamentals remain solid.

SunflowrQuant believes that, just as Ethereum outperformed Bitcoin in 2021-2022, a shift in market dynamics - including institutional interest, network upgrades, and broader crypto adoption - could spark a similar resurgence. The analyst noted:

"Looking at Ethereum’s price fluctuations, we may be at the foundation of new beginnings. Just like in previous cycles, after tough times, a strong rebound may occur, reaching new highs."

For now, Ethereum’s ability to reclaim its strength will depend on whether investor confidence returns and whether the market as a whole supports a renewed ETH rally. With Bitcoin surging ahead, all eyes are on Ethereum to see if it can close the gap.