Ethereum (ETH) is underperforming in 2025, down nearly 51% and ranked as the worst among top cryptocurrencies. Its decline is attributed to institutional sell-offs and emerging competition from platforms like Solana and Base. Despite a recent improvement in the Relative Strength Index (RSI), scepticism persists about Ethereum’s future potential. A critical price resistance at $1,669 poses a pivotal challenge for the asset’s recovery.
Ethereum (ETH) is experiencing significant difficulties amid a major downturn in 2025, having fallen nearly 50% year-to-date—making it the worst performer among leading cryptocurrencies. Competing assets like Solana are outperforming Ethereum on various metrics, intensifying challenges for ETH as it struggles to regain market traction.
Year-to-date performance comparison shows Ethereum down 51%, while Bitcoin’s decline is limited to 5%, Solana at 25.5%, BNB at 13.5%, and XRP witnessing a 1% increase. Ethereum’s persistent underperformance raises questions about its future as rival platforms gain ground, leading to concerns about ETH’s relevance amidst strong competition.
The ETH/BTC trading pair has plummeted to 0.01791, its lowest since 2020, highlighting the widening gap between Ethereum and Bitcoin. This decline has reportedly been bolstered by institutional sell-offs, including a significant $100 million liquidation from Galaxy Digital. Other entities, such as the Ethereum Foundation, have also engaged in large transactions, heightening investor anxiety over the asset’s stability.
Additionally, low staking rates for Ethereum and the increasing dominance of Bitcoin are contributing to a negative shift in market sentiment, raising doubts about Ethereum’s status as a premier smart contract platform.
In a glimmer of hope, Ethereum’s Relative Strength Index (RSI) has shown improvement, rising to 57.26 from 42.43 in a short time. The RSI is an important technical indicator used to assess market conditions, with values above 70 often seen as overbought and those below 30 as oversold. Current readings indicate that ETH is in a position of cautious optimism, although long-term bullish momentum remains in question.
The price of Ethereum is approaching a vital resistance level at $1,669, with the possibility of moving towards $1,749 if this level is breached. Short-term exponential moving averages are converging with longer-term averages, indicating potential bullish momentum, contingent on increased trading volume. A successful resistance breakout could improve investor sentiment, yet doubts persist about Ethereum’s long-term potential compared to active competitors.
Should Ethereum fail to maintain its upwards trajectory, it risks returning to the critical support level at $1,535. A breakdown below this support could signal further bearish trends, establishing new downside targets at $1,412 and possibly $1,385. Such a scenario would amplify concerns regarding Ethereum’s competitive viability against faster, more cost-effective alternatives.
