Ethereum under pressure: Two Prime abandons ETH Ethereum under pressure: Two Prime abandons ETH

The consulting company in investment Two Prime, registered with the Securities and Exchange Commission (SECOND) of the United States, announced a significant change: the abandonment of Ethereum (ETH) to focus exclusively on Bitcoin (BTC).

In the first quarter of 2025, Ethereum (ETH) indeed experienced a particularly turbulent period, recording a drop in 45% of its value Since the start of the year.

In any case, the decision of first two, made public on May 1, marks a radical change in the company's strategy which, in the last 15 months, had granted Loans totaling $ 1.5 billion in BTC and ETH.

Now the emphasis will only be placed on asset management and loans in Bitcoin.

Ethereum as a same? The motivations of first two

According to what was said by two bonuses, the behavior of the ETH has undergone substantial change. “The ETH statistical trading behavior, the value proposal and community culture have failed beyond a point that is worth being engaged,” said society.

The company, specialized in algorit-exchangestressed that data is the basis of its decisions, more than market stories. And the data, according to them, is clear: Ether no longer behaves as a predictable asset.

On the contrary, it is now exchanged “like a same”, with price movements that are considerably deviating from historical models.

During the turbulence of the first quarter of 2025, Bitcoin has maintained a consistent behavior with its fundamental dynamicsWhile the ETH has shown abnormal variations, which makes prediction based on difficult algorithm.

This has created, according to Two Prime, a “headache” for those who operate in algorithmic trade and the loans guaranteed by ETH, in particular in a context of High volatility in digital asset markets.

Two Prime's announcement immediately sparked a debate in the crypto. Many users have seen the declaration as possible Lower signal for ETHThis means an index that the price could have reached the bottom and is ready for a trend reversal.

“What a delayed declaration,” said an observer on X, comparing the volatility of the ETH to that of S&P 500which has lost 4.7% since the start of the year.

Others have questioned the relevance of the company: “I have never heard of them. Seems unimportant, “wrote a user, criticizing the reliability of Two Prime analysis.

However, there were those who interpreted the decision as a positive signal for ETH. “If it is not a lower signal for ETH, I don't know what it is,” said another user, highlighting the possibility of a price rebound After a bear cycle.

ETF on ETH: disappointing performance

Another factor that influenced Two Prime's decision was the Low performance of ETF on Ether.

The company underlined how the purchase of Bitcoin ETF has exceeded this on ETH by almost 24 times. Indicating a clear institutional disinterest in the main Altcoin.

According to first two, the failure of the ETH ETH sparked a Negative reflexive cycle. That is, low demand has led institutions such as Blackrock To devote fewer resources to the promotion and sale of these products.

Strengthen the dominant position of bitcoin more on the consumer market.

Despite this, ether remains the largest altcoin by assets under management (AUM) among ETF Crypto, with $ 9.2 billion at the end of last week, according to data from Corners. It is followed by Solana ($ 1.4 billion) and XRP ($ 1 billion).

After approval of the dry in May 2024, the ETHER ETHER SPOT had a slow start. Unlike the overwhelming success of the ETF Spot on Bitcoin, those of ETH had trouble capturing the interest of investors.

Some issuers have already taken drastic measures. Valve has ceased to exchange its contracts on ETHE Ether, while Wisdom withdrew the ETF Ethe Trust's proposal in September 2024.

More recently, in March 2025, ARK Liquidated his future Bull and Bear ETF on ether and bitcoin.

Bitcoin is confirmed as the dominant asset

The choice of first two to focus exclusively on Bitcoin reflects a broader trend in the digital investment sector.

In an increasingly competitive and unstable market, BTC continues to represent a Stable and predictable reference point. In other words, capable of attracting institutional capital and resisting the most extreme fluctuations.

Founded in 2019 by Alexander Blum And Marc FleuryTwo Prime has built its reputation by offering negotiation and loan services on BTC and ETH.

However, the recent market dynamics have led the company to reassess its priorities, abandoning an active that appears today, according to their analysis, too similar to a same to be considered a reliable investment.

The future of ether remains uncertain. On the one hand, the loss of confidence of institutional actors like Two Prime and the disappointing performance of ETFs represent disturbing signals.

On the other hand, the community's reaction and the dominant position of the ETH among the Altcoins indicate that the recovery potential cannot be excluded.

In a constantly evolving sector, the ability to adapt quickly to changes remains fundamental.
And while Bitcoin consolidates his leadershipEther will have to face new challenges to regain investors' confidence and reaffirm its role in the cryptocurrency landscape.