Ethereum, the world’s second-largest cryptocurrency by market cap, is facing one of its most challenging periods in recent history. Its market share has tumbled to levels not seen since 2020, raising alarm among investors and analysts alike. However, despite the gloomy backdrop, some market watchers believe a surprising turnaround could be just around the corner.
Once a dominant force in the crypto world, Ethereum's market share has steadily declined over the past year. According to recent data, ETH’s share of the total crypto market now sits at just 7%—a sharp fall from its 2021 peak of 22% during the last major bull run.
This steep decline represents a 67% drop over the last five years. The downward trajectory has been driven by a mix of negative market sentiment, regulatory uncertainty, and rising competition from other smart contract platforms such as Solana (SOL) and Avalanche (AVAX).
The challenges aren’t limited to the retail market. Institutional appetite for Ethereum has also cooled significantly in 2025. While December 2024 saw robust inflows of over $2 billion into Ethereum-based exchange-traded funds (ETFs), interest has fallen sharply this year.
In January and February 2025, spot ETH ETFs attracted less than $100 million in monthly inflows, according to data from Soso Value. More concerningly, over $500 million has been pulled out of these funds since March, signaling a growing lack of confidence among large investors.
Ethereum has also struggled in comparison to Bitcoin. The ETH/BTC ratio, which measures Ethereum’s price relative to Bitcoin, has nosedived by 77%, falling to a low of 0.018. This represents the weakest relative performance for ETH in five years and reflects Bitcoin’s dominance as a perceived “safer bet” in uncertain market conditions.
Much of this downturn occurred after Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus model. While the switch was intended to make the network more energy-efficient and scalable, it hasn’t yet translated into stronger investor confidence or price performance.
From its all-time high of over $4,000, Ethereum has seen its price shrink to around $1,500—a 64% drop that mirrors its decline in market share. Bearish sentiment continues to dominate, with fears that ETH may not have found a bottom just yet.
Still, not everyone is convinced the worst is here to stay.
Despite the grim outlook, there are glimmers of hope. Prominent crypto analyst Michael van de Poppe recently shared an optimistic forecast, predicting a possible 20% rally in Ethereum’s price within the next one to two weeks.
“I wouldn’t be surprised to see a 20% upwards candle on $ETH in the coming 1–2 weeks,” said van de Poppe, pointing to oversold conditions on Ethereum’s weekly chart. Technical indicators suggest the asset may be due for a short-term bounce, especially if buyer interest returns at key support levels.
Ethereum’s development team hasn’t been idle during the downturn. Two major upgrades—Pectra and Fusaka—are in the works, with promises to make Ethereum transactions faster and cheaper, both on the main chain (Layer 1) and through scaling solutions (Layer 2).
These upgrades are seen as critical in Ethereum’s effort to compete with newer, faster blockchains like Solana. If successfully rolled out, they could help restore confidence in Ethereum’s long-term potential and reignite investor interest.
Another potentially bullish development lies in the hands of regulators. The next key deadline for decisions on Ethereum ETF staking proposals is set for June. If approved, it would allow ETF holders to earn staking rewards—providing an additional incentive for institutional investment.
Such a move could also solidify Ethereum’s role as not just a smart contract platform, but a legitimate yield-generating asset in the eyes of traditional finance.
The road to recovery won't be easy. Ethereum faces fierce competition, reduced institutional backing, and a skeptical market. Yet with significant upgrades on the horizon and technical signs pointing to a potential rebound, ETH may not be down for long.
Investors and analysts will be watching closely over the next few weeks. If Ethereum can reclaim even a portion of its lost market share—and if sentiment shifts back into positive territory—then this recent low could turn out to be a springboard rather than a cliff.
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