The cryptocurrency market faced renewed turbulence this week as Ethereum (ETH) saw its value decline sharply, both in dollar terms and relative to Bitcoin (BTC). Over the past 24 hours, ETH dropped by 6%, slipping from a high of $2,425 on September 15 to a low of $2,260 on September 16—its weakest level since April 2021. This downturn coincided with broader market volatility, declining macroeconomic confidence, and a wave of fear, uncertainty, and doubt (FUD) circulating within the crypto community.
At the time of writing, the total cryptocurrency market cap has pulled back to $2.12 trillion, down 4.5% across the board, with Ethereum bearing the brunt of the sell-off. Notably, the ETH/BTC trading pair has hit its lowest point since April 2021, reaching 0.038—a clear signal that investor sentiment toward Ethereum is weakening compared to Bitcoin’s perceived stability.
Growing Skepticism Around Ethereum
A surge of negative sentiment has emerged across social media and analyst circles, contributing to the downward pressure on ETH. On September 15, Ethereum developer "antiprosynthesis" posted on X (formerly Twitter), lamenting: “Now half of what I see is FUD about ETH.” This observation reflects a broader shift in narrative, where even longtime supporters appear cautious or critical.
Prominent voices in the space have amplified this skepticism. Economist Alex Krüger likened Ethereum’s current market dynamics to the unpredictable performance of Brazilian footballer Neymar Jr.—drawing attention to volatility and inconsistency. Meanwhile, analysts James Check and “KALEO” shared memes highlighting ETH’s price struggles and its underperformance against BTC.
Adding fuel to the fire, influential crypto personality “Crypto Dog” pointed out that even Bitcoin Cash (BCH) outperformed Ethereum over the past year—an eye-opening comparison for many investors who once viewed ETH as a dominant altcoin leader.
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ETH/BTC Ratio Hits Critical Support
The ETH/BTC ratio falling to 0.038 underscores a significant shift in market dynamics. This metric is closely watched by traders as it reveals whether capital is rotating into or out of Ethereum relative to Bitcoin. A declining ratio suggests that BTC is gaining strength as the preferred store of value amid uncertainty.
Historically, periods of macroeconomic stress or regulatory ambiguity have favored Bitcoin over other cryptocurrencies. With Ethereum still navigating questions around scalability, fee structure, and regulatory scrutiny—especially in the U.S.—investors may be opting for perceived safety in Bitcoin.
This trend also reflects a broader risk-off mentality in the crypto market. As macro risks mount, capital tends to consolidate in the most liquid and trusted assets—Bitcoin being at the top of that list.
Macroeconomic Pressures Add to Market Jitters
The recent dip in ETH prices coincides with a pivotal week in global finance. The U.S. Federal Reserve is set to announce its interest rate decision on Wednesday, September 18. According to the CME FedWatch Tool, there's a 59% probability of a 50-basis-point rate cut, with a 41% chance of a smaller 25-basis-point reduction.
While rate cuts are typically seen as bullish for risk assets, expectations alone can trigger volatility. Earlier this month, Bitfinex analysts warned that an anticipated Fed rate cut might not translate into immediate gains for crypto markets. In fact, they suggested it could lead to short-term selling pressure as institutional investors rebalance portfolios ahead of policy shifts.
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Geopolitical Events Stir Uncertainty
On September 15, former U.S. President Donald Trump survived what major media outlets described as a second assassination attempt. The suspect, identified as 58-year-old Ryan Wesley Routh, was apprehended at the scene. Trump emerged unharmed and was safely evacuated.
While no direct causal link has been established between this event and cryptocurrency price movements, geopolitical shocks often trigger knee-jerk reactions in digital asset markets. In July, following Trump’s first alleged assassination attempt, crypto prices surged—particularly in meme coins and privacy-focused tokens—as traders speculated on political instability and capital flight.
However, this time the reaction was notably different. Instead of a rally, markets declined—suggesting that investor psychology may now be more sensitive to systemic risks than political headlines alone.
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Frequently Asked Questions (FAQ)
Q: Why is ETH falling against BTC?
A: ETH is underperforming BTC due to increased market risk aversion, regulatory uncertainty around Ethereum-based applications, and stronger investor preference for Bitcoin as a safe-haven digital asset during volatile periods.
Q: What does the ETH/BTC ratio indicate?
A: The ETH/BTC ratio shows how much ETH is worth in terms of BTC. A declining ratio means ETH is losing value relative to Bitcoin, often signaling weaker confidence in Ethereum’s near-term prospects.
Q: Could Fed rate cuts hurt cryptocurrency prices?
A: While rate cuts generally boost risk assets, anticipation of cuts can cause short-term volatility. Portfolio rebalancing by institutions ahead of monetary policy changes may temporarily pressure crypto prices.
Q: Is Ethereum losing relevance in the crypto market?
A: Not necessarily. Ethereum remains central to DeFi, NFTs, and smart contract platforms. However, increased competition and scalability challenges have led some investors to question its dominance.
Q: How do geopolitical events affect crypto markets?
A: Events like political violence or elections can trigger speculative trading. However, their impact is often short-lived unless they signal deeper economic or policy instability.
Q: Where can I track real-time ETH price movements?
A: Reliable platforms offer live charts and technical analysis tools to monitor ETH price trends and trading volume across major exchanges.
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Final Thoughts
Ethereum’s recent price slide reflects a confluence of technical weakness, macroeconomic uncertainty, and growing skepticism within the crypto community. While the network continues to power much of decentralized finance and blockchain innovation, investor sentiment has turned cautious amid broader market headwinds.
The drop in the ETH/BTC ratio to a three-year low is particularly telling—it suggests a rotation toward Bitcoin as the preferred digital reserve asset. Whether this trend reverses will depend on upcoming catalysts: Ethereum’s continued protocol improvements, clearer regulatory clarity, and how global monetary policy evolves in Q4 2025.
For now, traders and investors should remain vigilant, monitor key support levels, and prepare for further volatility as the market digests both on-chain and macro developments.