Chain data revealed that Ethereum has dropped to its lowest valuation compared to Bitcoin in May 2020. The current trading rate is 0.023278, marking a decline of 8.7% over the past 48 hours.
Chain data revealed that the Ethereum/Bitcoin exchange rate recorded its lowest level since May 2020. The currency pair is currently trading at 0.023278. The total locked value of Ethereum has decreased by about $30 billion since last year.
The ETH/BTC pair has dropped to its lowest level since May 2020
Coinmarketcap data revealed that the ETH currency lost 42.9% of its value since December 2024. Its current price is $1,945 per coin. Markets have experienced volatility this year due to macroeconomic factors and regulatory uncertainty.
Urgent 🚨: The value of Ethereum (ETH) has dropped to its lowest level compared to Bitcoin (BTC) since May 2020 pic.twitter.com/3rTFuPygua
— Barchart (@Barchart) March 12, 2025
Recent U.S. tariffs on Canada, China, and Mexico have caused shockwaves in global markets, leading to a sharp decline in stock prices as investors expressed concern over the potential for a trade war between these countries.
Cryptocurrency markets generally experienced a decline in prices and a drop in market value. Coinmarketcap data indicated that the market value of Ethereum decreased during the crash more than any other crypto asset.
Data indicated that the Solana and BNB chains recorded losses of 35.6% and 23%, respectively. TradingView data also indicated that the total locked value of the Ethereum network (TVL) fell from its peak of $74 billion in December to $45 billion.
The decline in the currency pair's price indicates a shift in the relative value of Ethereum compared to Bitcoin. This decline reflects a general market trend towards Bitcoin over Ethereum. Tradingview data revealed that cryptocurrency liquidations rose over the past 24 hours to exceed $900 million. The analytical platform indicated that long-term buy positions for Ethereum worth $202 million were wiped out from the network at once.
Liquidations began after Ethereum lost its key support level at $2,000, which alleviated the impact of losses on investors during previous sell-offs. DefiLlama data revealed a slowdown in stablecoin flows over the past month, indicating a decline in capital turnover in Ethereum protocols.
Data also indicated a decrease in trading volumes on decentralized exchanges from $92 billion in December to $82 billion in February. Futures trading on Ethereum saw a drop from $31 billion in December to $18 billion in February. DefiLlama data revealed that Ethereum revenues fell from $193 million in December to $26 million in February.
SosoValue data indicated that Ethereum exchange-traded funds recorded increasing outflows worth $176 million over the past month. The data pointed to a decline in institutional demand for Ethereum.
The Ethereum institution faces liquidation rumors amid the decline in ETH price
An anonymous wallet, rumored to belong to the Ethereum institution, deposited 30,098 Ethereum into a Maker Vault wallet. This deposit sparked rumors in the cryptocurrency community, with some suggesting that it may indicate the institution plans to liquidate its holdings.
Ethereum developers, Eric.eth and Sassal.eth, responded to rumors and denied that the wallet where the deposit was made belongs to the Ethereum institution. Cryptocurrency traders speculated that the institution could face liquidation exceeding $100 million if the price of Ethereum continues to drop.
The Ethereum institution revealed that the value of its treasury reached $970.2 million in October of last year. This represents a 39% decrease from its value of $1.6 billion in March 2022. This decline is attributed to the drop in the price of Ethereum, as this currency constitutes 81.3% of the institution's assets.
The institution exchanged 100 Ethereum for 374,334 Dai in December. It also revealed that it sold 4,266 Ethereum during 2024 to increase its returns. The institution disclosed that it raised $12.21 million, averaging $2,795 per Ethereum.
The Ethereum institution invested 50,000 Ethereum worth over $165 million in Aave in January 2025. It is said that the institution decided to achieve returns as the price of Ethereum continues to decline. Periodic sales indicate that the institution managed its treasury bond holdings to cover operational expenses.
Some investors commented that if the price of Ethereum continues to decline, the institution may have to sell parts of its holdings at less favorable prices. They hinted that if Ethereum falls below support levels, the institution may fail to meet its financial obligations, potentially leading to its liquidation.
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