The price of Ethereum has reached a new low compared to Bitcoin since transitioning to a proof-of-stake consensus mechanism. Despite a 36% increase in its price in 2023, Ethereum is currently trading 66% below its November 2021 peak. Ether’s decline against Bitcoin has raised concerns among investors about the reasons behind this trend and what it would take to reverse it. Investors had high hopes for protocol upgrades that reduced the need for new coin issuance and aligned with the vision of “ultrasound money.” Confidence grew as significant hurdles were overcome, but the optimism was short-lived as the price quickly fell back. The net inflow of Ethereum staking following an upgrade exceeded expectations. Potential catalysts for reversing the downtrend in Ether’s price relative to BTC include the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission. Regulatory uncertainty surrounding the Ethereum initial coin offering (ICO) also remains a concern. Recent activity from dormant Ethereum addresses has further amplified these concerns. On a positive note, requests for a spot Ether exchange-traded fund and the expansion of Canto to Ethereum’s layer 2 provide hope for Ethereum investors. Competitors like Solana and BNB Chain face similar risks in terms of ICO and securities regulations, making it unlikely for them to challenge Ethereum’s dominance in decentralized applications and trading volumes. Source: Cointelegraph