Ethereum has continued its downward trend against Bitcoin, reaching its lowest level since April 2021. From its peak in 2021, Ethereum has fallen over 55%, currently trading at 0.039 BTC, down 24% this year and 35% from its year-to-date high. It has also declined against other major cryptocurrencies like Solana, Binance Coin, and Tron.

In US dollar terms, Ethereum has dropped for four consecutive months, now trading near $2,300, its lowest since February. The sell-off is attributed to several factors, including a lackluster response from institutional investors to Ether ETFs, which have seen net outflows of over $581 million. These funds hold $6.62 billion in assets, significantly less than spot Bitcoin funds, which hold over $54 billion and have had net inflows of $18 billion.

Additionally, Ethereum has faced selling pressure from the Ethereum Foundation and its co-founder, Vitalik Buterin. Buterin recently sold tokens worth $2.2 million, and the foundation sold 350,000 coins.

Ethereum is also losing ground to layer-2 networks like Base, Arbitrum, Polygon, and Blast, which offer faster speeds and lower transaction costs. Furthermore, "smart money" investors have been offloading their Ethereum holdings, with one investor selling nearly $10 million worth of ETH in the last 24 hours. Notably, Jump Trading, a major player in the crypto industry, reduced its Ethereum holdings from over $531 million in July to zero. Source: https://crypto.news/ethereum-price-drops-to-a-41-month-low-against-bitcoin/ Show Less