Ethereum (ETH) is approaching a critical price zone compared to Bitcoin, which in the past has marked the beginning of a strong recovery.
The ETH fractal from 2019 shows bottom signals.
The ETH/BTC pair, currently trading near 0.019 BTC, is getting closer to the threshold of 0.016 BTC, a level it reached in September 2019 before surging nearly 450% in the following year.
Weekly performance chart of ETH/BTC | Source: TradingView
The current ETH/BTC setup is similar to 2019, with both periods marked by the relative strength index (RSI) in the oversold zone, long periods below key moving averages, and sharp sell-offs.
In 2019, ETH/BTC dropped more than 90% in the two years prior, due to the collapse of ICOs.
As of 2025, this trading pair has dropped more than 80% from the 2021 peak, influenced by skepticism about Ethereum's transition to proof-of-stake (PoS), increased competition, and Bitcoin's dominance as an institutional investment asset.
In response to growing concerns, Ethereum co-founder Vitalik Buterin has proposed a new architecture and cross-protocol standards to help make Ethereum simpler, faster, and easier to maintain like Bitcoin within the next 5 years.
An analyst called Buterin's proposal 'the most optimistic outlook for ETH.'
Optimistic hopes are emerging as ETH/BTC tries to break away from its multi-year 'downward parabolic line.' This resistance line has played a significant role in limiting ETH/BTC's upward price efforts since December 2021 but has shown signs of weakening since May 3.
Source: X
'We may see the price officially break out of this downward parabolic line,' chartist Jimie wrote.
He notes that if the resistance curve remains unchanged, ETH/BTC could drop to 0.016 BTC, the bottom level in September 2019 before the price bounced back about 450%.
Adam Back: Dump ETH and buy Bitcoin.
Skeptics like Adam Back argue that Buterin is overlooking larger design flaws while proposing to simplify Ethereum in the coming years.
Back criticized Ethereum's account-based system, saying it adds unnecessary complexity compared to Bitcoin's simpler UTXO model. He argued that this complexity increases technical risk and makes Ethereum harder to scale and secure.
He also warned that Ethereum's shift to PoS has concentrated power among insiders by redirecting miner rewards to large token holders.
'Right now, just dump ETH before it goes to 0 and buy Bitcoin,' he wrote, arguing that no upgrades can fix what are believed to be fundamental flaws in Ethereum.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.