Ethereum's market share plummets – Warning that ETH price could fall deep to $1,100

Ether's market share (ETH) is approaching its all-time low as classical technical patterns signal the risk of a deep correction to the $1,100 threshold.

Ethereum is gradually losing its dominant position

On April 9, the market share of Ethereum – a measure that reflects the proportion of ETH in the total cryptocurrency market capitalization – plummeted to its lowest level in years, at just 7.18%, according to data from TradingView.

This figure is only slightly higher than the historical low of 7.09% set in September 2019.

"Ethereum is approaching a record low market share," analyst Rekt Capital noted on platform X on April 13, while warning:

"Ethereum's market share needs to hold this important support zone if it wants to regain its position in the market in the coming months."

ETH market dominance ratio % | Source: Rekt CapitalCurrently, Ether's market share has dropped to its lowest level since the 2019–2020 period. Meanwhile, the closest competitor by market capitalization, XRP, has seen its market share grow by over 200% during the same period.

Other layer-1 blockchains such as BNB Chain (BNB) and Solana (SOL) have also recorded strong growth, achieving 40% and 344% respectively since the beginning of 2023.

Many factors are putting pressure on Ether's performance, including weak institutional investment inflows reflected by negative ETF data, a sluggish derivatives market, and increasing competition from emerging layer-1 networks.

The risks for Ethereum have become more evident when observing the total value locked (TVL) in the DeFi ecosystem. Although Ethereum is still leading with a TVL market share of 51.7%, this is a significant drop from 61.2% in February 2024. During the same period, the TVL on the Solana network surged by 172%.

The total value locked market share of L1 blockchains (%). Source: DefiLlama## The “bear flag” model of ETH price predicts a target of $1,100

The price of Ether (ETH/USD) is likely to continue the prevailing downward trend, despite the recent short-term recovery, as a familiar bearish pattern is gradually forming on the chart.

In the past three weeks, the price action of Ether has formed a bearish flag pattern on the daily timeframe — a pattern that often signals the continuation of a downtrend. If the price closes below the support line of the pattern, currently around the $1,600 mark, this could be a signal for the beginning of a stronger decline.

Based on the height of the flagpole, the next target reduction is identified around the threshold of $1,100, equivalent to an adjustment of approximately 33% from the current price.

Daily ETH/USDT Chart | Source: TradingviewAnother important technical factor to watch is the Relative Strength Index (RSI), which currently remains below the neutral threshold of 50 — indicating that selling pressure continues to dominate the market.

As Bitcoin Magazine once reported, ETH may establish a new bottom around $1,000, based on several technical and macro factors.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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