On Sunday, Ether fell to 0.03 BTC, marking a 50% decline from its position a year earlier, according to CoinGecko. The decline underscores a challenging period for Ethereum as Bitcoin hit a new all-time high of $108,893 early Monday.

Source: CoinGecko

Over the past year, Bitcoin has delivered a staggering 160% return to investors, overshadowing Ethereum’s comparatively modest 40% gain. For context, Ether remains nearly 30% below its peak in 2021, reflecting its struggles to maintain momentum. At the time of writing, Ethereum is trading at $3,339 with a slight decline of 0.93% over the past 24 hours, according to Brave New Coin’s Ethereum Liquid Index.

Eth has struggled to gain momentum in 2024. Source: Brave New Coin’s Ethereum Liquid Index

Ethereum has historically rallied when the Ethereum blockchain gained prominence for innovations like smart contracts and decentralized finance (DeFi) applications. However, a preference for Bitcoin and competing blockchains like Solana has dampened Ether’s market position.

Ethereum’s Taker Buy-Sell Ratio Below 1.0

Bitcoin’s influence extends beyond the cryptocurrency sector, surpassing traditional assets like gold. Currently, one Bitcoin holds a value equivalent to 40 ounces of gold. As a result, Bitcoin’s market share in gold has risen to 11.4%, demonstrating its growing role in the financial sphere.

In contrast, Ethereum has encountered difficulties. The Taker Buy Sell Ratio for Ethereum, a crucial indicator of trading sentiment, consistently remains below 1.00, according to CryptoQuant. The 30-day moving average, positioned at 0.9723, signifies a stronger presence of sellers in perpetual swap trades.

Source: CryptoQuant

Additionally, Ethereum faces mounting competition from projects such as Solana, which has gained significant attention.

That President Trump picked Solana to launch his Trump meme coin was a huge win for Solana and was seen as a diss to Ethereum. Solana has since performed well and Solana price predictions project a huge rally for SOL. Eth meanwhile, continues to struggle.

The Trump Meme Coin on Solana

An investment analyst at Presto Research, Min Jung points out that Ethereum’s performance has lagged during this cycle, while Solana’s rise through the memecoin phenomenon has gained momentum.

“Ethereum has notably underperformed this cycle, particularly as Solana gains traction through the memecoin frenzy,” said Min Jung.

Ethereum is Still Appealing to Investors

Despite its struggles, Ethereum still appeals to institutional investors. World Liberty Financial, a crypto lending platform promoted by Trump and his sons, recently increased its holdings of Ethereum. Min Jung noted that Ethereum’s status as the only cryptocurrency besides Bitcoin with an ETF underscores its resilience.

“Ethereum is well-positioned to be the next focal point after Bitcoin,” Jung added.

Significant fluctuations have marked Ethereum’s price movements in recent months. It peaked near $4,250 before tapering off, with the Taker Buy Sell Ratio oscillating narrowly between 0.95 and 1.04. Historical trends, such as the lows observed in March 2023, highlight the metric’s reliability in predicting potential market sell-offs or recoveries.

From mid-2024 to late December, Ethereum gained some ground, supported by a gradual uptick in the buy-sell ratio. That trend reflects improving trader confidence, even though the persistent sub-1.00 ratio signals cautious optimism. Analysts suggest monitoring any shifts beyond the 1.00 threshold for signs of a more robust recovery.