Since the Merge in September 2022, Ether has dropped nearly 70% against Bitcoin, prompting concerns about Ethereum's market position and price outlook. Initially, the Merge aimed to enhance energy efficiency and reduce Ether's supply over time but has since stalled, with the supply growth rate near 0% as of February 2025. A decline in on-chain activity has reduced transaction fees and ETH burns, contributing to an increasing Ether supply. Long-term holders have offloaded ETH, suggesting a lack of confidence, while major Bitcoin holders have increased their holdings. Bitcoin has gained about 160% against Ether since the Merge, intensifying competition, particularly from Solana, which is attracting projects typically launched on Ethereum. Despite oversold indicators for ETH/BTC suggesting a possible price bounce, Ethereum's long-term bearish trend remains, with potential for declines if key support levels are breached.

Source 🔗