Ethereum price suffers 77% crash against Bitcoin, on-chain deep dive reveals reasons why

Despite the roll -out of a large number of upgrades and innovations, the Ethereum -Price is lagging behind Bitcoin (BTC) With a wide margin. Reports show that ETH has suffered a stunning price crash of 77% against BTC-one decrease that is probably fed by a mix of technical, macro and sentiment-driven factors. In particular, on-chain analysis platform, Santiment has now established and demolished the main reasons behind this price struggle.

Ethereum Price Nossedives against Bitcoin

On April 11, Santiment released a detailed report on Ethereum, emphasize Almost four years under performance And the reasons behind it. Ethereum, once honored as the cryptocurrency that will most likely dede Bitcoin, recently has a Decrease If measured directly against BTC.

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According to the data on the chains of Santiment, Ethereum crashed With about 77% against Bitcoin since December 2021. Although the dollar value of ETH has not completely collapsed, especially in comparison with other altcoins, the long-term BTC/ETH ratio still sketches a horrible image for Ethereum holders.

Ethereum in particular did that too Can’t recover Everywhere near his November 2021 of all time from $ 4,760. On the other hand, Bitcoin has been poured forwardReclaiming many of its market dominance and surpassing ETH over almost every time frame.

This inequality has led to many traders and former Maximalists comparing ETH with a “shitcoin”. Even worse, different central to low-cap-altcoins have already surpassed the Ethereum in the short, medium and long-term time schedules, which causes further shame for the world’s second largest cryptocurrency by market capitalization. Based on the Santiment report, the ETH/BTC Price Ratio Thaar Only is enough to do doubt and uncertainty between Long -term holders.

Behind the scenes of Ethereum -Prize struggle

Beyond price action and market volatilitySantiment reveals that there are fundamental reasons Ethereum’s slow performance Over the years. Some of the most important criticism that analysts and traders have indicated are technical, sentimental and regulatory issues.

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Ironically, Ethereum’s Layer 2 Solutions are one of the most important factors of its underperformance. L2 solutions such as arbitrum, optimism and ZKSync are reportedly cannibalizing activities on the mainnet, and take investments out of ETH while thinly spreading the attention of investors.

Secondly, Ethereum seems to be struggling with complex route maps and communication, which has led to confusion from investors. Major updates such as the merger and Shanghai are difficult for investors to understand, making ETH less accessible than BTC.

Thirdly, users remain frustrated by the relative of Ethereum High gas costs And the slow rollout of important upgrades. This has pushed them to more affordable and faster alternatives, which considerably reduces acceptance.

Another primary reason for the Ethereum crash against Bitcoin is constant concerning regulations. In contrast to Bitcoin, who has a more established legal precedent, Ethereum is confronted with constant uncertainty about whether it could be labeled security.

Other points include the lack of appeal from ETH. While Bitcoin maintains the title as a Stable digital goldEthereum seems to be caught in between and has no clear or attractive investment story. Moreover, newer block chains such as Solana and Cardano also attract a considerable number of users with cheaper and faster solutions, which ultimately removes investments from ETH.

The last reason why Santiment has identified for the long -term price run of Ethereum is rise. Post-upgrade recordings of Stakes ETHs have created Standage Sell-Side edition, limits growth and momentum compared to Bitcoin.

Featured image of Unsplash, graph of TradingView.com