Ethereum Crashes 90% From High, ETH/BTC Ratio Hits 5-Year Low

Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant downturn, with its price crashing below $1,500 for the first time in seven years. This dramatic fall has erased nearly seven years of gains, sending shockwaves through the cryptocurrency community. The ETH/BTC ratio has also plummeted to a five-year low, raising concerns about network stagnation and the overall health of the Ethereum ecosystem.

The underperformance of Ethereum relative to Bitcoin is stark. Since its launch, Ethereum has underperformed Bitcoin 85% of the time. This persistent underperformance has led to a growing sense of unease among investors and developers alike. The recent price crash has exacerbated these concerns, with some analysts suggesting that the feasible downside for Ethereum could be significant.

The fall in Ethereum's price has been particularly steep, with the cryptocurrency losing about 90% of its value from its recent high, dropping down to the $500 range. This decline is reminiscent of the 2018 crash, which saw Ethereum's price plummet by a similar margin. The current situation has led to speculation about the future of Ethereum and its ability to recover from such a significant setback.

The underperformance of Ethereum relative to Bitcoin can be attributed to several factors. One of the primary concerns is network stagnation. Ethereum has faced challenges in scaling its network to handle increased transaction volumes, leading to higher fees and slower transaction times. This has made it less attractive to users and developers, who are increasingly turning to other blockchain platforms that offer faster and cheaper transactions.

Another factor contributing to Ethereum's underperformance is the growing competition from other cryptocurrencies. As the blockchain landscape continues to evolve, new platforms are emerging that offer innovative features and improved performance. This competition has put pressure on Ethereum to innovate and adapt, but the network has struggled to keep pace with the rapid changes in the industry.

The recent price crash has also raised questions about the leadership and direction of the Ethereum project. Co-founder Vitalik Buterin has been a prominent figure in the cryptocurrency community, but the current challenges facing Ethereum have led to calls for greater transparency and accountability from the project's leadership. Some investors and developers are calling for a more decentralized governance structure, which would give the community a greater say in the direction of the project.

Despite the current challenges, there are reasons to be optimistic about the future of Ethereum. The network has a strong community of developers and users who are committed to its success. Additionally, Ethereum's smart contract capabilities and decentralized application (dApp) ecosystem remain unmatched by other blockchain platforms. If the network can address its current challenges and continue to innovate, it has the potential to regain its position as a leading player in the cryptocurrency industry.

Ethereum’s dramatic slide isn’t just about market cycles — it’s raising internal concerns. Web3 researcher Stacy Muur noted on April 8 that Ethereum has had roughly the same number of active addresses for four years. “I love Ethereum, but it’s time to face reality,” she wrote, echoing growing dissatisfaction among long-time supporters.

Still, others argue that the real growth is happening on Ethereum’s layer-2 scaling networks, such as Arbitrum and Optimism, which now hold significant total value locked (TVL). These platforms are driving real user activity, even if it’s no longer reflected on the base Ethereum chain.

With most ETH holders now at a loss, technical analysts are watching closely for signs of a bottom. Fractal patterns from past market cycles, specifically 2018 and 2022, suggest ETH is entering oversold territory. Some experts believe the next support level is around $1,000, a price that could offer relief or spark deeper fear depending on market conditions.

Despite short-term pain, many still view Ethereum as fundamentally strong due to its role in powering DeFi, NFTs, and the layer-2 ecosystem. However, sentiment remains fragile as long as ETH continues to lag behind Bitcoin in both price and perceived momentum.

Ethereum isn’t just having a rough week—it’s been falling behind for a while now. The value of Ethereum compared to Bitcoin is at its lowest in five years, and more people are starting to worry that it might be stuck. The next few months (especially Q2) will be very important. If Ethereum can’t bounce back or drops below $1,000, it could face a long stretch where people don’t trust it as much. For now, investors are being careful, keeping a close eye on price charts and blockchain data to see what might happen next.