Ethereum, the second world cryptocurrency by market capitalization, faces one of its most difficult periods in recent history. Its market share has dropped to levels that have not been seen since 2020, which has made the alarm among investors and analysts. However, despite the dark backdrop, some market observers believe that a surprising turnaround could be on us.
Ethereum’s market share is only 7%
Formerly a dominant force in the world of cryptography, the market share of Ethereum has regularly decreased in the past year. According to recent data, ETH’s share on the total cryptography market is now only 7% – a sharp drop compared to its 22% peak in the last major bull race.
This sharp decline represents a drop of 67% in the past five years. The descending trajectory was motivated by a mixture of negative feeling on the market, regulatory uncertainty and increasing competition from other intelligent contract platforms such as Solana (soil) and avalanche (AVAX).
Institutional interest fades
The challenges are not limited to the retail market. The institutional appetite for Ethereum also considerably cooled in 2025. While December 2024 saw robust entries of more than $ 2 billion in funds (ETF) based on exchanges based on Ethereum (ETF), interest has decreased sharply this year.
In January and February 2025, the FNB Spot ETH attracted less than $ 100 million on monthly entrances, according to data from Soso Value. More unfortunately, more than $ 500 million has been withdrawn from these funds since March, reporting a growing lack of confidence among major investors.
The ETH / BTC ratio falls at 5 years old
Ethereum also had trouble compared to Bitcoin. The ETH / BTC ratio, which measures the price of Ethereum compared to Bitcoin, deviated by 77%, falling to a minimum of 0.018. This represents the lowest relative performance of ETH in five years and reflects the domination of bitcoin as a “safer bet” perceived in uncertain market conditions.
A large part of this slowdown occurred after Ethereum went from proof of work (POW) to a model of proof of evidence (POS). Although the switch is intended to make the network more economical in energy and scalable, it has not yet translated as stronger investors or price performance.
Ethereum Price goes from $ 4,000 to $ 1,500
Since its summit of more than $ 4,000, Ethereum has seen its price decrease to around $ 1,500 – a drop of 64% which reflects its drop in market share. The lowering feeling continues to dominate, with the fears that the ETH has not yet found a background.
However, not everyone is convinced that the worst is there to stay.
Could a 20% rally happen?
Despite the dark perspectives, there are glimmer of hope. Michael de Poppe, an eminent crypto analyst, recently shared an optimistic forecast, predicting a possible rally of 20% in the Ethereum price in the next ones at two weeks.
“I would not be surprised to see an upward candle of 20% on $ ETH in the next 1 to 2 weeks,” said Van de Poppe, pointing conditions on the conditions on the weekly graphic of Ethereum. The technical indicators suggest that the asset can be due to a short -term rebound, especially if the interest of buyers returns to the main levels of support.
Upgrades could change the situation
Ethereum’s development team was not inactive during the slowdown. Two major upgrades – Pectra and Fusaka – are underway, with promises to make faster and cheaper Ethereum transactions, both on the main chain (layer 1) and through scaling solutions (layer 2).
These upgrades are considered essential in Ethereum’s efforts to compete with more recent and faster blockchains like Solana. If they are successfully deployed, they could help restore confidence in the long -term potential of Ethereum and the interest of long -term investors.
Approval of the features of ETFs could change the momentum
Another potentially optimistic development lies in the hands of regulators. The next key deadline for decisions on ETF ETF proposals is set for June. If it is approved, it would allow FNB holders to win stimulation awards, looking for additional incentive for institutional investment.
Such a decision could also consolidate the role of Ethereum as not only an intelligent contract platform, but a legitimate asset generating yields in the eyes of traditional finance.
Can Ethereum recover his lost land?
The path to recovery will not be easy. Ethereum faces fierce competition, a reduction in institutional support and a skeptical market. However, with important upgrades on the horizon and technical panels pointing towards a potential rebound, the ETH may not be down for a long time.
Investors and analysts will monitor carefully in the coming weeks. If Ethereum can even recover a part of its lost market share – and if the feeling amounts to a positive territory – then this recent bottom could prove to be a springboard rather than a cliff.
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