Ethereum (ETH) is at a three-and-a-half-year low against Bitcoin, a level last seen in April 2021. The persistent underperformance of Ether to the world's largest cryptocurrency, Bitcoin, is causing analysts and investors to question if a bottom for ETH is near, or if there is further downside to the decline.

Alex Thorn, head of research at Galaxy, said that for the first time in years, the ETH/BTC ratio had sunk below 0.03. He also noted it was down 53% since Ethereum's transition to proof-of-stake in September 2022 and questioned what might slow that decline.

Investor and mathematician Fred Krueger even went so far as to call ETH "on the edge of collapse" against Bitcoin. He cited an ETF inflow disparity between Bitcoin and Ether as one potential reason Ether has failed to impress.

While Bitcoin ETFs have seen heavy inflows, attracting 305,400 BTC in inflows since launch, Ether ETFs have seen net negative flows. In fact, Ether ETFs in the U.S. have seen $581 million in net outflows since the products launched, with Grayscale's Ether ETF experiencing the lion's share of the outflows at $2.7 billion, per Farside Investors.

However, not all analysts are bearish on Ethereum. Hedgex highlighted the fact that the relative strength index for ETH/BTC is at historical lows. Because it has done so only five times in Ethereum's history, such oversold conditions, says Hedgex, have always preceded significant surges in price.