Ether Struggles Against Bitcoin as JPMorgan Questions Upgrade Impact

TLDR

• Ethereum lags Bitcoin as JPMorgan questions upgrade-led recovery hopes.
• JPMorgan says weak network demand keeps Ethereum behind Bitcoin.
• Ethereum upgrades face pressure as Bitcoin leads crypto market rebound.
• Ether struggles as JPMorgan flags weak DeFi growth and demand.
• Bitcoin gains stronger flows while Ethereum waits for real network growth.

Ethereum lost ground against Bitcoin during the latest crypto rebound, as JPMorgan linked the gap to weak network activity. The bank said Ether needs stronger DeFi use, better real-world demand, and deeper market confidence. The view keeps pressure on upcoming upgrades to prove their impact.

Ethereum Faces Fresh Pressure

Ethereum has struggled to match Bitcoin’s recovery after the market selloff tied to the Iran conflict. JPMorgan analysts said Ether still lacks the demand strength needed to reverse its long underperformance. The trend started in 2023 and has continued through the broader crypto recovery.

Ethereum spot ETFs also showed weaker recovery compared with Bitcoin funds. Bitcoin ETFs regained about two-thirds of earlier outflows, while Ether ETFs recovered about one-third. Consequently, institutional flows continued to favor Bitcoin over Ethereum.

Ethereum upgrades remain central to the next phase of the market debate. However, JPMorgan said recent upgrades reduced Layer 2 costs but also lowered Ethereum network fees. That change weakened the burn mechanism and increased pressure from net supply growth.

Bitcoin Draws Stronger Institutional Demand

Bitcoin regained market strength faster than Ether across key institutional measures. JPMorgan pointed to spot ETF flows and CME futures positioning as clear signs of stronger demand. The recovery showed how capital still treats Bitcoin as the stronger crypto benchmark.

Bitcoin futures positioning has nearly recovered from its earlier drawdown. Meanwhile, Ether futures positioning remains below previous levels. Therefore, large market participants rebuilt Bitcoin exposure more aggressively than Ethereum exposure.

Bitcoin also benefited from deeper liquidity and broader confidence after the selloff. The asset maintained stronger market depth while many altcoins remained weak. Besides, its ETF structure continued to support faster inflows during the recovery.

Altcoins Remain Under Pressure

Altcoins have also underperformed Bitcoin since 2023, according to JPMorgan. The bank linked that weakness to thinner liquidity, weaker market depth, and limited DeFi growth. Repeated hacks also damaged confidence across the wider crypto sector.

Ethereum remains the main test case because its upgrades aim to improve scalability. The upcoming Glamsterdam and Hegota upgrades should raise throughput and reduce base-layer transaction costs. However, stronger demand must follow for Ethereum to gain better price support.

Ethereum now needs real network growth to challenge Bitcoin’s lead. More DeFi activity, stronger real-world applications, and higher on-chain usage could help restore momentum. Until then, Bitcoin may keep attracting stronger demand during market recoveries.

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