Miners begin offloading Ethereum holdings as it continues underperforming BTC

Ethereum has been severely underperforming Bitcoin throughout the past few days and weeks, with the second-largest cryptocurrency by market capitalization currently trading far below its yearly highs.

One reason why Ethereum could be underperforming its larger counterpart at the moment is due to a single on-chain trend.

An analytics platform noted in a recent tweet that Ethereum miners have been selling their ETH holdings rapidly, which could be why it has been severely lagging behind Bitcoin.

Ethereum struggles to match Bitcoin's momentum.

Ethereum has been hovering within the lower-$400 region for the past few days as Bitcoin slowly continues to push higher.

Yesterday, a sharp selloff seen by BTC sent Ethereum plunging to lows of $380, but the buying pressure seen at this region allowed bulls to quickly revert its downtrend and send it rocketing back up past $400. Ethereum still needs to climb roughly 20 percent before reaching its 2020 highs of $490 that were set at the peak of the DeFi hype cycle.

ETH miners begin offloading holdings as technical strength degrades.

One reason why Ethereum has been underperforming Bitcoin is due to miners offloading their holdings over the past few days.

"The Ethereum miners have been dumping, and it appears that last week's increased on-chain activity and trader FOMO has slowed."

Until miners stop offloading their balances, Ethereum may continue lagging behind the benchmark cryptocurrency.