Ethereum's "Bleeding" Continues, Dropping More Than BTC's 80%, When Will the Market Recover?
Original Article Title: "Ethereum Falls Back to Five Years Ago! 'ETH/BTC' Drops Below 0.02 to Hit New Low Since 2020, Community FUD Continues to Ferment"
Original Article Author: 0xJigglypuff, Dynamic Zone Dynamic Trend BlockTempo
Ethereum's exchange rate ratio against Bitcoin (ETH/BTC) today dropped below 0.02, hitting a new low of over five years, even lower than the beginning of 2020, triggering community panic and doubt. Experts say this represents the faith Ethereum has built over the past five years, which has now reset at the market level.
Ethereum has recently suffered from market sell-offs, with today's (7th) exchange rate against Bitcoin (ETH/BTC) dropping below 0.02, reaching the lowest point since early 2020, showing that the market has extreme distrust in Ethereum compared to Bitcoin, making it the preferred asset to be sold off. At the same time, the community has recently increased its criticism of Ethereum, putting Ethereum in a dual crisis of community and market trust.
Tariff War Exposes Asset's "True Colors"
Today, news of Trump's tariff war continued to ferment at the opening of the Asian market, causing not only a futures trading halt in Japan but also triggering sharp declines in Hong Kong, South Korea, and Taiwan, leading to a market bloodbath. Against this backdrop, the cryptocurrency market also experienced a sharp decline, with Bitcoin falling to $77,000 and Ethereum suffering even more. The "ETH/BTC" pair, considered by the crypto community as a DeFi arbitrage stability indicator, saw a 7.5% drop within 24 hours, showing that the market is selling off Ethereum at a much faster pace than Bitcoin, even briefly dropping below 0.02, returning to early 2020 levels.
In an interview with an anonymous crypto market expert, Dynamic Zone revealed that this is a huge warning sign for Ethereum, especially as the market believes that Ethereum's achievements over the past five years have been erased, severely denting investor confidence:
The ETH/BTC pair was supposed to be a relatively stable trading pair compared to stablecoins and other tokens, so during the DeFi era, many whales relied on this indicator to judge market stability. Investing in this liquidity was also much less costly than losses in other assets.
But when you see this ratio drop by 5% in a day, this level of fluctuation is already at the single-asset level, and even risk-averse investors specializing in this liquidity cannot avoid losses. This is a huge blow to long-term investors, especially those who still believe in Ethereum. Many believers entered the market at 0.13 and provided liquidity, and now from 0.02, even if they only invested in ETH/BTC, the value has dropped to less than one-sixth. I know many Ethereum believers who have already left in heartbreak...
Ethereum Decay Begins to Show Since 2024
While on the surface it may seem like Trump's trade war has brought Ethereum to a "full circle," in reality, signs of decay in Ethereum have been evident since 2024. Not only has Ethereum's key figure, Vitalik, faced intense community criticism, but many ecosystem insiders, supporters, and investors have publicly criticized the Ethereum Foundation's lack of action since 2024, ultimately leading to a recent reassessment and reorganization.
However, the reorganization clearly did not quell the community's anger. Prior to this recent plunge, three pieces of community FUD news emerged in just one week, all coming from former Ethereum allies, such as Base game developers, Ethereum OGs, and venture capital firm Paradigm, who criticized Ethereum on multiple issues including culture, decision-making, programming language, and foundation corruption.
This year, Ethereum also saw a new batch of senior executives, including some female officials, such as the new chair Aya Miyaguchi and the new executive director Xiao Wei Wang. However, these new executives' appointments have also sparked some community controversies. For example, Aya Miyaguchi once stated on social media that she believes Ethereum's purpose is "Ethereum is very valuable, and we can sell it to support developers." This statement sparked considerable controversy, indicating a significant gap between the foundation's internal views and the broader user base.
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