The native cryptocurrency of Ethereum, Ether (ETH), has lost more than 35 percent of its value against Bitcoin (BTC) over the past year. Analysts suggest that the downward trend in the ETH/BTC pair is still ongoing and could signal a new phase of correction ahead.
Technical data signals further declines
Technical analysis reveals that ETH/BTC continues to struggle with a long-term descending trendline, which has served as a strong resistance since 2022. The current price pattern bears a striking resemblance to the structure that formed just before a sharp 70 percent drop seen between 2024 and 2025. Notably, in August 2025, the pair once again tested this major trendline but was rejected at the confluence of the 0.382 Fibonacci retracement and the 50-month exponential moving average.
Following this rejection, the pair resumed its downward movement and dipped below the 20-month exponential average support at 0.034 BTC. Based on these indicators, selling pressure remains dominant. If this weakness continues, the next significant support for 2026 stands at 0.0176 BTC—a level 40 percent below current prices and aligned with the bottom of the 2020 cycle.
Exchange data confirms intensifying sell pressure
Market data further points to sustained selling pressure on Ether. As of May, ETH reserves held on Binance—the world’s largest crypto exchange—rose to 3.62 million coins. This amount represents roughly 24.6 percent of all Ether stored on exchanges. Data from CryptoQuant shows that while Ethereum reserves on exchanges are increasing, Bitcoin reserves on Binance are actually declining.
A rise in the amount of a coin held on exchanges is typically interpreted as an increase in tokens readily available for sale, which can exert downward pressure on prices. Conversely, falling reserves usually signal that assets are being pulled from exchanges for long-term holding. These trends underline that ETH supply is increasing while BTC liquidity is tightening.
Ethereum’s weakness is seen as a fundamental shift that aligns with declining momentum in the “ultrasound money” narrative over recent years. In contrast, Bitcoin’s strength is attributed to accumulation by institutional investors and an increasing presence in Wall Street portfolios.
Market dynamics turn against Ethereum
The weakening price dynamics of Ethereum are supported not just by technical signals, but also by fundamental factors. Ether’s most recent narrative has lost traction, while Bitcoin has gained a decisive edge through large-scale institutional purchases.
Bitcoin’s growing inclusion in the portfolios of major Wall Street investment firms further cements its status as the market leader. These developments are widely regarded as key drivers widening the gap between Ether and Bitcoin.
