Ethereum and Bitcoin differ technically, impacting their market performance. Bitcoin, primarily a decentralized currency, uses Proof of Work (PoW) for security, emphasizing simplicity and stability. Its limited scripting language restricts functionality, focusing on store-of-value appeal, which drives its market dominance and price resilience. Ethereum, however, is a programmable platform with smart contracts, using PoW historically but transitioning to Proof of Stake (PoS) via Ethereum 2.0 for scalability and energy efficiency. This flexibility enables decentralized applications (dApps) and DeFi, attracting developers and investors, boosting its utility and market growth. However, Ethereum’s complexity can lead to higher volatility and gas fee fluctuations, affecting short-term performance. Bitcoin’s scarcity (21 million cap) contrasts with Ethereum’s uncapped supply, influencing long-term value perceptions. These technical distinctions shape their respective market dynamics and investor behavior.