The ETH/BTC ratio has fallen to its lowest level in over four years, dropping as low as 0.027, highlighting Ethereum's significant underperformance compared to Bitcoin. This decline comes amid changing institutional preferences toward Bitcoin ETFs, with Ethereum dropping approximately 13.8% against Bitcoin in the past month and over 70% since September 2022. Despite this, Sean Dawson from Derive.xyz notes a potential positive sentiment for ETH in the longer term, indicated by an uptick in bullish sentiment metrics. However, Ethereum's on-chain supply has been increasing, contrary to expectations of deflation post-Merge, impacting investor confidence. Furthermore, Ethereum's fee revenue has decreased, now ranking behind several other chains. Institutional inflows have heavily favored Bitcoin, garnering $35 billion compared to Ethereum's $2.6 billion. Technical upgrades such as Pectra, set for March, could potentially reverse Ethereum's downward trend, but current market dynamics favor Bitcoin due to its clearer narrative and stronger institutional backing, leaving Ethereum's community facing leadership and direction challenges.

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