The Ethereum to Bitcoin ratio has dropped dramatically to unprecedented lows, as per data from CryptoQuant, reaching a level unseen in recent years. This decline signals uncertainty and concern for investors who are wary of the possibility of recovery, especially with declining network activity and waning institutional interest. 75% of the ETH/BTC ratio’s drop since 2021 highlights a significant bearish trend. While historical downturns often followed by recoveries, current conditions suggest an uncertain future for Ethereum. A key reason for its decline is the update Dencun, which slowed down Ethereum’s growth by reducing transaction fees and enhancing coin burning rates. This hasn’t generated renewed activity, as oversupply remains a significant factor impacting value creation. Layer 2 solutions like Arbitrum and Base have offered faster alternatives to Ethereum’s mainnet congestion, further contributing to users seeking faster networks.