As of Wednesday, the ETH/BTC pair is trading at 0.019, a level not seen since January 2020. This massive downtrend has sparked renewed interest in the ongoing relationship between the two leading cryptocurrencies—Bitcoin and Ethereum—especially considering the significant divergence between them in recent months.

Don’t Miss:

In March 2024, Bitcoin achieved a new all-time high, while Ethereum lagged, remaining about 20% off its highs before topping out near $4,100 in early March of the same year. This divergence marked a stark contrast between the performance of the two assets, with Bitcoin pushing to new highs while Ethereum struggled to keep pace.

Screenshot via TradingView User @NoticeTrades)

Fast forward to April 2024, and the gap has only widened. Ethereum is currently trading at $1,590, down 61% from the swing high formed in early December. In comparison, Bitcoin is down only 28% from its high in January, showing a more resilient performance in the face of market volatility.

With Ethereum’s price struggling while Bitcoin maintains relative strength, the question remains: Can Ethereum mount a comeback, or will it continue to underperform against its more dominant ‘counterpart’?

Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

The Reality of Picking Altcoins: Can They Outperform Bitcoin?

Many investors are drawn to altcoins, hoping they can outperform Bitcoin. However, much like in the stock market, consistently picking winners is difficult. In traditional markets, even top fund managers struggle to beat broad indices like the S&P 500. The same applies to crypto—Bitcoin is the market leader, setting trends and capturing most capital flows.

While altcoins can surge at times, many fail to maintain long-term relevance or underperform during market corrections. Ethereum’s recent struggle to keep up with Bitcoin’s rally highlights this challenge. Like in stocks, a diversified approach—holding Bitcoin as a core position while selectively investing in altcoins with strong fundamentals—remains the safest strategy. Ultimately, Bitcoin’s dominance makes it hard for altcoins to consistently outperform.

See Also: Have $200K saved? Here’s how to turn it into lasting wealth

Diving Into The Charts

When it comes to the trend, it has clearly been downhill for ETH, and it is currently not showing any signs of changing. However, it is important to identify previous levels that could act as potential demand zones, where traders or long-term investors may look to increase their positions. 

Source: TradingView (User & Screenshot – @NoticeTrades)

On the weekly chart, ETH has traded below an old low printed in August 2023, when the majority of markets started to bottom. This is a natural support area for ETH and could act as a level where we see a short-term bounce. 

The important factor to monitor will be momentum at this level and whether Bitcoin dominance starts to fall. Currently, Bitcoin dominance is still above 60%, and the momentum for Ethereum is not there just yet.

Read Next: