Cryptocurrency

4 Reasons Ethereum (ETH) Is Falling Behind Bitcoin (BTC) in 2025

Written By : IndustryTrends

Ethereum (ETH) lags, considering it is one of Bitcoin's strongest competitors. Technical issues, macroeconomic challenges, waning investor interest, and bullish ETH bursts tend to push Ethereum to the back. Bitcoin leads the crypto market due to Bitcoin ETF inflows, institutional support, and being marketed as digital gold. While Ethereum's struggles enable it to reclaim essential price levels, Bitcoin breaks through resistances and strengthens its accumulation. These are four major points for Ether’s underperformance to Bitcoin this year.

Sentiment Loss Due To ETF Outflows And Tariff Concerns

Relatively, Ethereum ETFs have had consistent ETH outflows, which signals a loss in investor confidence. Trump’s anticipated April 2 tariff is seen to create macro headwinds, fueling ETH challenges, aiming to hold above $2,100. Lower trading confidence and worries of an economic downturn risk inflating trade disputes make market participants cautious. Ethereum ETF flows and global trade tensions remain unresolved, ETH continues failing to reclaim the $2,100 price, and Ethereum lags behind Bitcoin.

Pectra Upgrade Delays Are Hurting Investor Confidence

Ethereum’s long-anticipated Pectra upgrade has been riddled with setbacks, eroding trust in the network’s near-term roadmap. Initially set for a March mainnet launch, Pectra faced failures on the Holesky and Sepolia testnets, pushing back deployment timelines. These delays have added to market anxiety and dampened ETH’s recovery momentum. In contrast, Bitcoin’s simplicity and consistency remain a strength in times of technical turbulence across altcoins.

Trump’s 25% Automotive Tariffs Spook ETH Investors

When President Trump announced a 25% tariff on imported cars and light trucks targeting major trade partners such as Mexico, Canada, Japan, and Germany, investors swiftly recalibrated. The timing couldn't have been worse for ETH, which had just begun recovering from its March slump. During the last round of tariff announcements in early March, ETH nosedived from $3,400 to $2,100 within 72 hours. Such geopolitical shocks impact high-beta assets like ETH more severely than safe-haven assets like Bitcoin. As global uncertainty rises, recession fears intensify, and investor appetite for risk drops, Ethereum finds itself on the wrong side of capital flows.

Long Liquidations Accelerate ETH Downtrend

The recent price drop wasn’t purely organic; a massive wave of long liquidations exacerbated ETH’s decline. In just 24 hours, Ethereum's position lost more than $97 million in value, with long trades accounting for $88.7 million of that 91% loss. Traders were trapped when ETH leveraged trading pushed up to $2,100 “retesting” in the bull market but retraced heavily crashing towards $2,100. This demand imbalance triggered a chain reaction of additional liquidations, further deepening the decline. The crypto market suffered over $350 million in liquidations, underscoring a major deleverage. Liquidation spirals drag prices rapidly and discourage re-entry, especially from retail investors. 

Rexas Finance (RXS): The Blockchain Revolution Leader in 2025

While Ethereum stumbles, Rexas Finance (RXS) is rapidly capturing attention as a next-generation blockchain disruptor. Much like Bitcoin redefined finance in 2010, Rexas is revolutionizing asset ownership through real-world asset (RWA) tokenization. By fractionalizing high-value assets like real estate, commodities, and intellectual property into digital tokens, Rexas opens up investment avenues once reserved for institutions and the ultra-wealthy. The infrastructure is robust, secure, and utility-driven, built for real-world use, not speculation. Tokenized RWAs are projected to grow from $50 billion today to $16 trillion by 2030. Rexas is strategically positioned to lead this boom. Early CoinMarketCap and CoinGecko listings help investors watch Rexas Finance’s performance and market sentiment, while a Certik Audit Certification gives investors trust in Rexas Finance's smart contracts' security and transparency. Since its presale began in September 2024, Rexas Finance has raised $47.7 million, selling over 458.7 million tokens. The price surged from $0.03 to $0.20, a 566% gain, with no VC dumping and complete transparency. It’s a model of what modern blockchain projects should look like.

Conclusion

Ethereum’s current woes stem from a convergence of technical setbacks, macro shocks, and fading investor confidence. As it fights to regain footing, Bitcoin is extending its dominance. Meanwhile, new entrants like Rexas Finance are proving that innovation, real-world utility, and trust can still capture the market's imagination. For investors navigating 2025, ETH may no longer be the default altcoin bet. The market is evolving, and so should your portfolio.

For more information about Rexas Finance (RXS) visit the links below:

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