Ethereum Approaches Critical Bitcoin Level with Historic Rebound Potential

Ethereum's Ether (ETH), valued at approximately $1,829, is approaching a significant price level against Bitcoin (BTC), which historically marked the start of substantial gains. The ETH/BTC pair, currently near 0.019 BTC and approaching 0.016 BTC—its level in September 2019 before a nearly 450% rally—draws a parallel to the 2019 market conditions. That year, ETH/BTC declined over 90% over two years following the ICO collapse.

Today, the pair has fallen over 80% from its 2021 peak, weighed down by skepticism over Ethereum’s transition to proof-of-stake (PoS), increased competition, and Bitcoin’s rising dominance among institutional investors. Ethereum’s co-founder, Vitalik Buterin, has proposed new protocols and standards to streamline and enhance Ethereum’s architecture, aiming to make it faster and more maintainable, comparable to Bitcoin within five years. Some analysts see this proposal as highly optimistic for ETH.

The current price action suggests ETH/BTC is attempting to break free from a multi-year bearish parabola, a resistance pattern that has limited upward movement since December 2021 but appears to be weakening as of May 3. A chart analyst suggested that if this resistance holds, ETH/BTC could decline toward 0.016 BTC, the same level it hit before a major rally in 2019.

Skeptics, including Bitcoin’s early advocate Adam Back, criticize Ethereum’s design. Back argues that Ethereum’s account-based system introduces unnecessary complexity compared to Bitcoin’s simpler UTXO model, increasing technical risks and making scaling and security more challenging. He also warns that the shift to PoS has concentrated power among large token holders and insiders. Back recommends selling ETH and buying Bitcoin, asserting that Ethereum’s foundational flaws cannot be fixed through future upgrades.