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Ethereum’s native token, Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>), plunged to its lowest point in three years against Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) on Aug. 5 amid the global market upheaval. This sharp decline dragged the ETH/BTC year-to-date returns down by 25%.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/c98d2a9c-bb12-49a8-84fd-dff69ca71b1f.png" alt="Why is Ethereum losing market share to Bitcoin?" title="">
 <figcaption style="text-align: center;">
 ETH/BTC daily price chart. Source: TradingView
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Ether is persistently underperforming Bitcoin despite the long-awaited <a href="https://cointelegraph.com/news/eth-etf">launch of its spot exchange-traded funds (ETFs)</a> in the United States, which — <a href="https://cointelegraph.com/news/ethereum-etf-inflows-10-billion-eth-new-highs-analyst">as many analysts have&nbsp;predicted</a><a href="https://cointelegraph.com/news/ethereum-etf-inflows-10-billion-eth-new-highs-analyst"></a>&nbsp;— could become a catalyst to draw institutional capital to the Ethereum market.&nbsp;
<h2 id="sol-is-beating-ether">SOL is beating Ether</h2>
Ether's growing underperformance versus Bitcoin aligns with its declining dominance against its top blockchain rival, Solana and its SOL (<a href="https://cointelegraph.com/solana-price-index">SOL</a>) token.
Notably, the SOL/ETH pair has risen by 10.75% in the last 24 hours to reach a new record high of 0.064 ETH on Aug. 8. This surge aligned with the launch of <a href="https://br.cointelegraph.com/news/exclusive-cvm-approves-the-first-solana-spot-etf-in-brazil-and-latin-america?_gl=1%2abk8ub1%2a_gcl_au%2aMjAyMzQyNjEwMS4xNzE2OTY2NjA4%2a_ga%2aMTc1OTA4NjQ2Ni4xNzE2NjQxMTk2%2a_ga_53R24TEEB1%2aMTcyMzE0MTIzNC4yNjQuMS4xNzIzMTQxMjQwLjU0LjAuMTQxNjcwNjMzNA..">spot Solana ETFs in Brazil</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/8a1c5447-bf5d-4b40-8376-8eaaaecb7637.png" alt="Why is Ethereum losing market share to Bitcoin?" title="">
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 SOL/ETH daily price chart. Source: TradingView
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Meanwhile, it is part of a rebound that started in June. Since then, the pair has bounced by approximately 75%.
<h2 id="poor-ether-etf-debut-compared-to-bitcoin">Poor Ether ETF debut compared to Bitcoin</h2>
The much-anticipated launch of spot Ether ETFs in the United States met with a surprisingly <a href="https://cointelegraph.com/news/ethereum-etfs-major-movements-ethe-outflow-august-2024"></a><a href="https://cointelegraph.com/news/ethereum-etfs-major-movements-ethe-outflow-august-2024">cold response from investors</a>. Since these investment vehicles went live for trading on July 23, they have <a href="https://farside.co.uk/?p=1518" target="_blank" rel="noopener nofollow">witnessed</a> $387.7 million in outflows, according to Farside Investors data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/b01aa8c0-f98d-419f-9051-c1d337d1de0f.png" alt="Why is Ethereum losing market share to Bitcoin?" title="">
 <figcaption style="text-align: center;">
 Ether ETF flows. Source: Farside Investors
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In comparison, Bitcoin ETF flows in the first two weeks <a href="https://farside.co.uk/?page_id=997" target="_blank" rel="noopener nofollow">were net positive</a> after their launch on Jan. 11.&nbsp;
Bitcoin is primarily seen as a “store of value.” On the other hand, Ethereum is viewed as a platform for decentralized applications and smart contracts. This fundamental difference can influence traditional investors’ preferences.
Related:&nbsp;<a href="https://cointelegraph.com/news/jump-trading-ether-dump-smart-move-trouble">Jump Trading’s Ether dump: Smart move or sign of trouble?</a>
For instance, according to CoinGecko, only six public companies <a href="https://www.coingecko.com/en/public-companies-ethereum" target="_blank" rel="noopener nofollow">hold</a> Ether as a reserve asset compared to 29 companies in Bitcoin’s case.
<h2 id="ether-rides-descending-channel">Ether rides descending channel</h2>
From a technical viewpoint, Ether’s decline versus Bitcoin is part of a downtrend that has been occurring inside its prevailing descending channel since September 2022.&nbsp;
In May 2024, ETH/BTC tested the channel's upper trendline at around 0.056 BTC, and it has since corrected by up to 30%. Interestingly, the same upper trendline aligns with two other resistances, namely the 50-week (red) and the 200-week (blue) exponential moving averages (EMA).
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/a23f8b56-668a-4587-a538-b639c6ec2693.png" alt="Why is Ethereum losing market share to Bitcoin?" title="">
 <figcaption style="text-align: center;">
 ETH/BTC weekly price chart. Source: TradingView
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Nonetheless, as of August, Ether was testing the channel’s lower trendline for a rebound, with its potential upside target around 0.050 BTC. This level coincides with ETH/BTC’s 0.236 Fibonacci retracement line.
The possibility of a rebound move increases further due to Ether's weekly relative strength index (RSI) reading at 34.60, just over four points away from its oversold threshold level. An oversold RSI typically precedes a period of rebound or consolidation.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is Ethereum losing market share to Bitcoin?

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