Ethereum Holders Face Deeper Drawdowns Compared to Bitcoin as Market Volatility Persists
As of April 2025, Ethereum investors continue to experience more severe losses than their Bitcoin counterparts amidst prolonged cryptocurrency market instability. The ETH/BTC ratio has shown consistent underperformance, with Ethereum’s price action demonstrating higher beta characteristics during this corrective phase. Market analysts attribute this divergence to multiple factors including network congestion, higher gas fees impacting DeFi activity, and institutional preference for Bitcoin as a relative safe haven. Technical indicators suggest Ethereum’s support levels are being tested more aggressively than Bitcoin’s, potentially leading to further capital rotation between the two major crypto assets.
Ethereum Outpaces Bitcoin In Recent Losses
Over the last few days, Ethereum and Bitcoin have struggled with notable bearish pressure that has hampered their upward movements. During this volatile period, seasoned market expert and host of the Crypto Banter show, Kyle Doops, has outlined substantial losses in both assets as observed in the 6-Hour Rolling Losses metric.
Ethereum’s value has declined more precipitously than that of several of its competitors, triggering selling pressure among investors. During the recent sell-off, Ethereum holders have locked in $564 million in losses, highlighting growing investor caution and a shift in market sentiment.
According to the expert, this is one of the worst losses ETH investors have experienced since the 2023 bull began. The notable losses raise concerns about ETH’s short-term resilience and future performance as volatile market conditions constantly affect investors’ confidence in the altcoin.
Kyle Doops highlighted that while losses are decreasing, this could imply that the market is adjusting to lower pricing. With the market adapting to lower price conditions, the market expert is confident that capitulation is still present.
In another X post, Kyle Doops reported that Bitcoin is navigating rough waters as it suffers significant losses amid persistent market turbulence. This huge loss has also triggered speculations about the sustainability of BTC’s renewed upward trend to key levels like $85,000.
Data from the expert reveals that investors of the largest cryptocurrency asset experienced about $250 million in realized losses in just 6 hours after last week’s sharp drop. In the current market cycle, this loss is one of the biggest so far.
However, looking at the chart, each leg down is exhibiting less pain, which suggests that sellers might be running out of ammo. As key technical resistance levels continue to hinder BTC’s uptrend, the future of the flagship asset is becoming increasingly uncertain.
Where One Of ETH’s Strongest Support Lies
ETH has made a brief rebound to the $1,600 mark after a sudden drop on Wednesday. Delving into the price action, Ali Martinez, a crypto analyst, has underlined a crucial support zone for Ethereum, where significant investor interest was seen in spite of continued price fluctuation.
While the altcoin slowly rebounds, Ali Martinez highlighted that the $1,528.50 is a key support level in its price dynamics. This is due to the notable accumulation around this level. On-chain data shows that about 2.61 million wallet addresses purchased more than 4.82 million ETH in this zone, making it a robust area of support against downside pressure.
