Ethereum’s Ether token nears a key price level against Bitcoin that previously triggered a significant rally. Analysts see similarities to a past trend in 2019. Despite rising optimism due to proposed improvements by founder Vitalik Buterin, critics like Adam Back argue Ethereum’s underlying complexities remain problematic, questioning it as a viable investment.
Ethereum’s Ether (ETH) token is closing in on a pivotal level against Bitcoin (BTC), one that previously marked a significant rebound. Currently, the ETH/BTC pair trades close to 0.019 BTC but is inching toward 0.016 BTC, a level that triggered a dramatic rally of nearly 450% back in September 2019. Historical patterns in the price charts are noteworthy.
The similarities between now and 2019 are striking. Both scenarios show an oversold relative strength index (RSI), long stretches beneath vital moving averages, and extensive multi-year declines. Notably, during 2019, the ETH/BTC pair had plummeted over 90% in the two preceding years, largely due to the fallout from the ICO crash. Now in 2025, the pair is down over 80% from the peak of 2021, facing skepticism mainly due to Ethereum’s transition to proof-of-stake (PoS), increased competition, and Bitcoin’s emerging dominance among institutional investors.
In light of these concerns, Ethereum co-founder, Vitalik Buterin, has introduced plans for new architecture and protocol-wide standards aimed at enhancing Ethereum’s efficiency and maintainability to align it more closely with the reliability of Bitcoin in a five-year timeline. Some analysts see this as a hopeful sign for Ethereum, with one remarking that Buterin’s proposed changes represent “the most bullish thing for ETH”.
This optimism coincides with ETH/BTC’s efforts to break out from a multi-year “bearish parabola,” a resistance curve that has constrained the pairing since December 2021. Recent trends indicate this resistance might be weakening, as noted by chartist Jimie. He pointed out that should the resistance hold, ETH/BTC could dip towards 0.016 BTC—the historical low leading into that towering rally in 2019.
On the flip side, some critics remain unconvinced. Adam Back, a renowned figure in Bitcoin’s proof-of-work protocol, argues Buterin’s focus on simplifying Ethereum neglects more profound design flaws. He points out Ethereum’s account-based structure, asserting that it introduces excessive complexity compared to Bitcoin’s more straightforward UTXO (unspent transaction output) model. According to Back, this complexity escalates technical risks and hampers Ethereum’s scalability and security.
He has urged investors to consider liquidating their ETH positions before they risk hitting zero, advocating a shift towards Bitcoin instead. Back contends that no impending upgrades can adequately address what he perceives as fundamental weaknesses in Ethereum’s underpinnings.
It’s important to note that this article does not provide any investment advice. Investments and trading come with inherent risks, and readers should perform their own due diligence before making any financial decisions.
