Ethereum Performs Worse Than All 5 Major Cryptocurrencies in a Strong Downtrend

Ethereum is under pressure as it attempts to recover from one of its worst-performing years among major cryptocurrencies, falling nearly 50% in 2025. Despite signs of improved growth momentum, with the RSI index rising and the EMA line suggesting a potential breakout, ETH continues to lag behind competitors like Solana across many metrics. The ETH/BTC ratio has fallen to its lowest level in years amidst strong institutional sell-offs. As ETH approaches a key resistance level, the market remains divided, with buyers eyeing a breakout and skeptics questioning the long-term relevance of the chain. Ethereum Becomes the Worst Performing Currency of 2025 Among the Top 5 Cryptocurrencies Ethereum is currently the largest cryptocurrency asset with the worst performance in 2025, with a price drop of nearly 51% since the beginning of the year, significantly underperforming compared to Bitcoin (-5%), Solana (-25.5%), BNB (-13.5%), and even XRP, which increased by 1%. This poor performance has raised increasing concerns about the future of Ethereum, especially as alternative chains like Solana and Base continue to grow. Solana is currently leading the industry in key on-chain metrics such as DEX volume, application revenue, and user activity, while Base is quickly attracting the attention of developers. As these competitors rise, Ethereum's dominance is increasingly challenged both narratively and in terms of usage, with some analysts even suggesting that XRP's market capitalization could soon surpass Ethereum.

The ETH/BTC ratio has fallen to 0.01791 — the lowest level since 2020 — indicating the degree of decline of Ethereum compared to Bitcoin. This decline has been accelerated by large sell-offs from institutions, including Galaxy Digital, which sold over 100 million USD worth of ETH in just one week. The Ethereum Foundation and Paradigm have also conducted large-scale money transfer transactions, contributing to investor unease. Additionally, Solana has recently surpassed Ethereum in Staking Market Cap. Compounding the issue is Ethereum's low staking rate and the increasing dominance of Bitcoin, both of which are causing market sentiment and capital flows to move away from ETH. As a result, Ethereum's position as a leading smart contract platform is being questioned more than ever. Ethereum Shows Signs of Recovery, But the Upward Momentum is Still Limited The relative strength index (RSI) of Ethereum has increased to 57.26, up from a level of 42.43 a day earlier, signaling a significant increase in short-term momentum. RSI is a technical indicator that measures the speed and magnitude of recent price changes to evaluate whether an asset is overbought or oversold. This indicator oscillates between 0 and 100, with values above 70 typically indicating overbought conditions and values below 30 indicating oversold conditions. Indicators from 50 to 70 often indicate moderate bullish momentum, while indicators from 30 to 50 indicate bearish or neutral momentum.

With the RSI of ETH currently at 57.26, this asset is in a neutral bullish zone. It indicates that momentum is improving but is still not strong enough to indicate an overheating condition. It is important to note that Ethereum has not seen any RSI above 70 since March 24 - nearly a month ago - which signals that despite the recent recovery, the price has not yet entered overbought territory or shown signs of a sustainable breakout. This indicates cautious optimism: while buyers are regaining control, Ethereum still lacks the strong momentum typically driving significant price rallies. If the RSI continues to rise and surpasses the 70 level, this could indicate a stronger bullish sentiment returning. Ethereum Struggles With Resistance As The Market Questions Its Future The EMA line of Ethereum is starting to show signs of potential bullish reversal. The price is currently approaching an important resistance level of $1,669. If that level is broken, the price of Ethereum could target the next level at $1,749. With the strong upward momentum, the price could even reach $1,954 — the first time surpassing $1,900 since April 2. The short-term EMA lines are getting closer to the long-term EMA lines, a setup that supports this bullish outlook. Increased trading volume will further reinforce this case. A successful breakthrough can help restore investor confidence in a challenging year for ETH.

However, skepticism about the long-term position of Ethereum continues to grow within the cryptocurrency community, especially as rival chains gain more attention. If ETH cannot maintain its upward momentum, it may test the support area at $1,535. A breakdown below that level will revert the structure back to a downtrend, opening up a downside target at $1,412 and possibly $1,385. In that scenario, Ethereum's inability to regain key levels could raise doubts about its competitive advantage, especially as there is increasing activity towards faster and cheaper alternatives.