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Why Is Ethereum (ETH) Struggling in 2025? | Analyzing ETH's Underperformance Against Major Cryptos

Ethereum (ETH) is Dogecoin prediction 2040experiencing one of its toughest years in recent memory, with its value dropping nearly 50% in 2025. While technical indicators like the Relative Strength Index (RSI) and Exponential Moving Averages (EMA) suggest a possible rebound, ETH continues to trail behind competitors such as Solana in critical performance metrics.


The ETH/BTC ratio has hit multi-year lows, driven by significant institutional sell-offs. As ETH nears a crucial resistance level, market opinions are split—optimists anticipate a breakout, while skeptics raise concerns about Ethereum's long-term viability in an increasingly competitive landscape.


Ethereum's 2025 Performance: A Concerning Trend


Among the top five cryptocurrencies, Ethereum stands out as the weakest performer in 2025, with its price down approximately 51% year-to-date. This decline starkly contrasts with Bitcoin's modest 5% drop, Solana's 25.5% decrease, BNB's 13.5% fall, and even XRP's slight 1% gain.


This underperformance has led to growing doubts about Ethereum's future, particularly as alternative blockchain platforms like Solana and Base gain traction. Solana, for instance, now leads in key on-chain metrics, including decentralized exchange (DEX) volume, application revenue, and user engagement. Meanwhile, Base is rapidly attracting developer interest, further intensifying competition.


The ETH/BTC ratio has plummeted to 0.01791, its lowest point since 2020, underscoring Ethereum's struggles relative to Bitcoin. Institutional sell-offs, including a $100 million ETH dump by Galaxy Digital in a single week, have exacerbated the decline. The Ethereum Foundation and Paradigm have also executed large-scale transfers, adding to investor uncertainty.


Ethereum's low staking rates and Bitcoin's expanding market dominance have further shifted sentiment away from ETH, raising questions about its status as the leading smart contract platform.


Technical Indicators: Glimmers of Hope for Ethereum


Ethereum's RSI has risen to 57.26, up from 42.43 just a day earlier, indicating a short-term momentum boost. The RSI, which gauges whether an asset is overbought or oversold, suggests ETH is in a neutral-to-bullish phase. However, it hasn't breached the 70 threshold since March 24, meaning the asset hasn't entered overbought territory or signaled a sustained rally.


This cautious optimism suggests buyers are regaining control, but ETH lacks the aggressive momentum needed for a significant price surge. A sustained RSI climb above 70 could signal stronger bullish sentiment.


Ethereum's Critical Resistance Battle


Ethereum's EMA lines hint at a potential bullish reversal, with the price approaching a key resistance level at $1,669. A breakout could propel ETH toward $1,749, and with strong momentum, it might even challenge $1,954—a level not seen since early April.


Short-term EMAs are converging with longer-term ones, supporting this optimistic outlook. Increased trading volume would further bolster the case for a rebound, potentially restoring some investor confidence.


However, skepticism persists as rival blockchains gain ground. If ETH fails to maintain upward momentum, it could retest the $1,535 support zone. A drop below this level would reignite bearish sentiment, with potential downside targets at $1,412 and $1,385.


In such a scenario, Ethereum's inability to reclaim critical levels could deepen doubts about its competitive edge, especially as faster and more cost-effective alternatives continue to attract users and developers.


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