On November 21, 2024, Ethereum’s price in Bitcoin terms fell to 0.03187 BTC, marking its lowest level since March 2021. Experts attribute this decline to multiple factors, including fierce competition and Bitcoin’s recent rally. At the time of writing, Ethereum’s value in Bitcoin hovers around 0.032 BTC, reflecting a 9.2% drop on the weekly chart.
Key Factors Behind the Decline
Several developments have contributed to Ethereum’s underperformance relative to Bitcoin:
- Bitcoin’s Dominance:
- Bitcoin has been on a record-breaking rally, repeatedly hitting all-time highs in recent days.
- The launch of options trading for spot Bitcoin ETFs on the U.S. stock market has attracted significant capital inflows, further boosting Bitcoin’s dominance.
- Weak Ethereum ETF Performance:
- Spot Ethereum ETFs have seen sustained capital outflows over the past several days.
- A BlackRock representative expressed dissatisfaction with their fund’s performance, reflecting broader market sentiment.
- Limited Impact of Ethereum ETFs:
- Since their launch, spot Ethereum ETFs have failed to positively impact Ethereum’s price, which has dropped 26% during the same period.
- Intense Competition:
- Analysts point to increasing competition in the blockchain space, which has dampened enthusiasm for Ethereum.
Expert Commentary
Steven Zheng, an analyst speaking to The Block, emphasized the competitive landscape as a major headwind for Ethereum. Meanwhile, experts from 21Shares likened Ethereum’s potential to that of Amazon, suggesting that investors may still underestimate the blockchain’s long-term value.
Conclusion
Ethereum’s declining price in Bitcoin terms reflects broader market dynamics, including Bitcoin’s dominance, weak ETF performance, and rising competition. While short-term challenges remain, some experts believe Ethereum’s potential is yet to be fully realized, leaving room for optimism in the long run.
