6-4-2025 – Ethereum has recorded its weakest quarterly performance amongst major digital assets, whilst its market dominance has plummeted to a mere 8%—a level not witnessed since the COVID-19 market turbulence five years prior.
Unlike its 2020 recovery, when Ethereum swiftly rebounded to claim double-digit market share, the current technical indicators paint a markedly different picture. The Relative Strength Index (RSI) remains stubbornly depressed, even as Ethereum trades at its lowest point in two years, suggesting prolonged bearish sentiment.
The landscape has shifted dramatically since mid-2024, with Ethereum’s influence continuing to diminish despite traditionally bullish catalysts. Neither the Bitcoin halving event, the Trump-induced market optimism, nor the Federal Reserve’s triple interest rate reduction managed to spark a meaningful revival in Ethereum’s market position.
Whilst Ethereum did achieve a respectable 47% annual appreciation, its market dominance fell by 4 percentage points, settling at 12% in the final quarter of 2024. This decline becomes particularly noteworthy when juxtaposed against Bitcoin’s ascendancy, which saw its market dominance surge from 54% to 61%, pushing its total value near the unprecedented $2 trillion threshold.
The institutional investment landscape has notably favoured Bitcoin since March, with Ethereum-based exchange-traded funds experiencing consistent outflows—a clear indication of waning investor confidence. This preference for Bitcoin appears rooted in its emerging status as a haven during periods of market uncertainty.
Current market dynamics suggest a sustained exodus of capital from Ethereum, with its five-year low in market dominance reinforcing the narrative of a structural shift in investor preference. The prevailing market conditions and institutional behaviour patterns make a 2020-style resurgence in Ethereum’s dominance appear increasingly improbable.
