Ethereum Price Suffers 77% Crash Against Bitcoin, On-Chain Deep Dive Reveals Reasons Why
Ethereum has experienced a 77% price decline against Bitcoin since December 2021, attributed to various technical, macroeconomic, and sentiment-driven factors. Despite numerous upgrades, Ethereum has not recovered its November 2021 all-time high of $4,760, while Bitcoin has regained market dominance. Criticisms of Ethereum include the impact of Layer 2 solutions like Arbitrum and Optimism, which divert activity from the mainnet, and complex communication regarding updates that confuse investors. High gas fees and slow upgrades have pushed users toward cheaper alternatives. Regulatory uncertainties regarding Ethereum's classification as a security further complicate its market position. Additionally, Ethereum lacks a clear investment narrative compared to Bitcoin and faces rising selling pressure from post-upgrade withdrawals, limiting its growth potential.
