Foreign media commentators believe that Ethereum significantly underperformed Bitcoin during the crypto market downturn in June 2026. Year-to-date, ETH has fallen approximately 32%, while BTC has fallen approximately 11%, with the ETH/BTC ratio dropping to around 0.0283, a 10-month low.
Greater volatility leads to initial pressure
The article argues that the most direct reason is Ethereum's greater volatility. When the market is rising, ETH tends to rise faster; when the market weakens, it usually falls more sharply. In this round of decline, ETH once fell by about 7.5% in 24 hours, breaking below $1,800, while BTC fell by about 5% during the same period, still holding above $62,000.
From an asset perspective, Bitcoin has deeper liquidity, wider institutional holdings, and a more stable "digital gold" narrative. In contrast, Ethereum not only represents the crypto asset itself but also carries the growth expectations of its smart contract platform and ecosystem. When risk appetite declines, funds tend to withdraw from riskier assets first.
ETF funding gap widens and diverges.
The article cites the continued weakening of the ETH/BTC ratio as a key indicator explaining the divergence between the two. This ratio, which peaked above 0.08 in December 2021, had fallen to approximately 0.0283 by June 2026, a drop of over 35% from its August 2025 peak. This means that even if both fluctuate in the same direction, Bitcoin's ability to preserve value is stronger than Ethereum's.
Commentators suggest this long-term divergence is related to the structural buying that followed the launch of US spot Bitcoin ETFs in early 2024. Bitcoin ETFs attracted substantial institutional funds, while Ethereum, although subsequently having its own spot ETF, saw significantly weaker overall size and fundraising capacity.
- In early June, the combined outflow of two types of ETFs exceeded $609 million in a single day.
- Bitcoin ETFs saw outflows of approximately $519 million.
- Ethereum ETF saw outflows of approximately $90 million.
However, when measured by their respective sizes, the Ethereum ETF faces greater outflow pressure. The article states that the Ethereum ETF has total net assets of approximately $12 billion, while the Bitcoin ETF exceeds $90 billion. The smaller pool of funds bearing the brunt of redemptions means that ETH lacks sufficient buying power to cushion any declines.
Whales selling off in competition with public blockchains
Besides the ETF gap, the article also mentions several pressures specific to Ethereum. Firstly, whales continue to transfer ETH to exchanges, which usually means increased potential selling pressure. Secondly, there is an increase in leveraged short positions against ETH in the market, making it easier to amplify volatility during price declines and suppressing rebounds.
The article also points out that Solana has already siphoned off some on-chain activity and market attention, while other Layer 1 and Layer 2 projects continue to compete for users and liquidity. During market corrections, investors focus more on whether ETH has truly captured value commensurate with its valuation, which weakens the willingness to buy on dips.
Overall, this commentary argues that Ethereum's larger drop than Bitcoin's is not merely a short-term emotional fluctuation, but rather the result of a combination of high volatility, ETF demand gaps, and on-chain selling pressure.
