BTC vs. ETH: Why Ethereum Price Lags Behind Bitcoin

The crypto market’s two titans, Bitcoin (BTC) and Ethereum (ETH), continue to dominate investor attention as both assets post impressive gains in 2025. Yet, their paths differ in key ways that could define the next phase of digital asset growth heading into 2026.

Why Ethereum?

Ethereum has outperformed Bitcoin in 2025, rising 30% year-to-date compared to Bitcoin’s 25% gain. Between May and September, ETH more than doubled in price, quickly erasing any earlier underperformance relative to BTC.

Ethereum’s key differentiator remains its proof-of-stake (PoS) consensus mechanism, in contrast to Bitcoin’s proof-of-work (PoW) model. While this distinction may seem technical, it has profound investment implications. PoS allows investors to stake their ETH, and in return, earn passive income through staking rewards. This dynamic introduces a yield component to Ethereum ownership that Bitcoin cannot replicate.

Adding to Ethereum’s bullish momentum, two new Ethereum treasury companies launched this summer, aggressively accumulating ETH at scale. Their accumulation programs are expected to create a steady, long-term demand floor for the asset, reinforcing its market strength.

Investor sentiment has followed suit. Standard Chartered recently raised its Ethereum price targets, projecting $7,500 by the end of 2025 and as high as $25,000 by 2028. Year-over-year, Ethereum’s price has delivered an impressive 59% gain, underscoring growing institutional and corporate confidence in its future role as the foundational layer of Web3.

Why Bitcoin?

While Ethereum benefits from its staking economy and smart contract utility, Bitcoin continues to lead as the most resilient, decentralized, and trusted digital asset.

In September 2024, BlackRock published an analysis highlighting Bitcoin’s exceptional resilience to political, economic, and geopolitical shocks. Over the past five years, Bitcoin has maintained its status as a safe-haven asset, validating its role as “digital gold.”

Cathie Wood, CEO of Ark Invest, reinforced this view, calling Bitcoin “the global monetary system”, a revolutionary concept that she believes sets it apart from every other crypto project. Wood emphasized that Bitcoin’s security record remains unmatched: the Layer-1 blockchain has never been hacked, a distinction not all networks can claim.

Ark Invest, an early Bitcoin bull since 2017, continues to back the asset through both direct exposure and holdings in Bitcoin-linked companies such as MicroStrategy (MSTR). The firm’s long-term forecast remains highly optimistic, with a price target of $2.4 million per BTC by 2030.

In the short term, Bitcoin’s technical structure supports this bullish stance. The 20-day (green) and 50-day (blue) EMAs show a steep upward slope, confirming strong buying momentum during dips. The $117,000–$115,000 support zone, where these EMAs converge, serves as a critical level for maintaining the bullish structure.

Meanwhile, the 100-day EMA (orange), currently near $113,000, provides medium-term support. This level Bitcoin reclaimed in late September, triggering its latest upward surge.

Despite occasional volatility, both Bitcoin and Ethereum continue to exhibit strong uptrends. Ethereum’s fundamental upgrades and the growing treasury accumulation narrative could fuel a move toward $10,000, representing a 100% surge from current levels. 

Bitcoin, on the other hand, retains its dominance as the market’s anchor asset and institutional favorite.