Ethereum’s ETH/BTC ratio has plunged 77% since December 2021, turning the once beloved altcoin into a punching bag for crypto traders.

However, beneath the sliding metrics and bearish sentiment, analysts argue that developments being carried out on the network could set the stage for a long-term rebound.

The ETH/BTC Bloodbath

According to an April 11 report from Santiment analyst Brian Q, since its peak in late 2021, the ETH/BTC ratio has cratered by 77%, leaving long-term holders frustrated. In the last three years, anyone who bought the asset near its all-time high (ATH) of $4,800 hasn’t had a profitable exit.

Furthermore, ETH has just experienced its worst Q1 in eight years, dropping 45% in the first three months of 2025. The theme has carried on into April, with the token down nearly 19% in the past fortnight. Additionally, over the last seven days, the asset severely underperformed, dropping 14.6%, while global crypto markets fell just 4.1%.

The pain is palpable on social media, with Santiment quoting traders jokingly calling Ethereum “the new shitcoin,” while others pointed to smaller altcoins that have registered better returns.

Critics have cited several reasons for the network’s poor performance, including competition from Layer-2 solutions like Arbitrum and Optimism, which have diverted attention and capital away from ETH, as well as slow updates, including the recently postponed Pectra upgrade. Additionally, post-Merge staking withdrawals have introduced consistent sell pressure, weighing on ETH’s price action.

Comeback Starts with Tech, Not Hype

However, Santiment believes that this market gloom belies the progress being made under Ethereum’s hood. The analytics firm points out that the network has quietly completed some of the most complex upgrades in blockchain history, arguably laying the foundation for its next act.

Since hitting its ATH, Ethereum has completely overhauled its consensus mechanism, unlocked staked ETH withdrawals, and is now deep into scaling with EIP-4844’s proto-danksharding.

Additionally, despite its price slump, Ethereum still dominates decentralized finance, boasts the majority of active developers, and seems to be the platform of choice for emerging applications such as decentralized identity and social networks.

Moreover, the blockchain’s co-founder, Vitalik Buterin, is already looking forward. On April 11, the 31-year-old proposed a comprehensive roadmap to improve Ethereum’s user privacy, targeting both on-chain payments and anonymized app interactions.

In Brian Q’s opinion, these milestones haven’t just reduced energy usage and gas fees; they have reset the network’s technical foundation for mainstream adoption.