As the second-largest cryptocurrency by market cap, Ethereum has continued to show weakness in this bull market, not only failing to challenge its previous bull market all-time high ($4,878), but also demonstrating notably weaker support compared to other mainstream cryptocurrencies during market downturns.

Against this backdrop, CoinDesk senior analyst James Van Straten cited glassnode data yesterday, pointing out that the ETH/BTC exchange rate dropped to 0.02193, reaching its lowest level in nearly five years during the market pullback. The analyst also noted that historically, during Bitcoin halving cycles, Ethereum typically outperforms Bitcoin in the 12 months following the halving. However, since Bitcoin's halving last April, this is the first time Ethereum has not outperformed Bitcoin.

Why is Ethereum so weak?

The analyst pointed out that Ethereum's poor performance primarily stems from the trade war initiated during Trump's presidency and the persistent inflation in the United States, which has driven investors towards more liquid and lower-risk assets, also explaining gold's continuous new highs.

In the cryptocurrency realm, Bitcoin is undoubtedly the asset bellwether. With institutional investors entering the crypto market, Ethereum struggles to compete with Bitcoin in liquidity and risk, and funds originally invested in Ethereum are gradually shifting towards Bitcoin.

Does Ethereum still have a chance to rebound?

While investor confidence in Ethereum seems to have reached rock bottom, it's worth noting that Ethereum's official stance has always emphasized long-term network development over short-term price fluctuations. Some suggest that ETH's price could still potentially rise again, with reasons including:

• Ethereum's Pectra upgrade: The latest Pectra upgrade is set to go live on the mainnet in April, potentially enhancing Ethereum's security and scalability to attract more users;
• US ETF staking: With the current relaxed cryptocurrency regulation in the US, Ethereum spot ETF staking might ultimately be approved by the SEC, potentially increasing institutional demand for ETH;
• RWA growth: As a blockchain focused on security with a thriving DeFi ecosystem, Ethereum is an ideal chain for Real World Assets (RWA). Once RWA truly begins to explode, ETH's price could be re-energized.

In summary, while the current ETH price softness and investor exodus are realities Ethereum must face, the potential positive factors for a potential rebound are not impossible. The future trajectory of ETH remains to be seen.