Source: Cointelegraph Original: "{title}"
Ethereum (ETH) market is approaching historical lows, and a classic bearish chart pattern suggests that the price may further decline to $1,100.
According to data from Cointelegraph Markets Pro and TradingView, as of April 9, Ethereum's market dominance (i.e., the percentage of ETH in the total cryptocurrency market capitalization) has dropped to a multi-year low of 7.18%.
This figure is just slightly above the historical low of 7.09% set in September 2019.
Renowned cryptocurrency analyst Rekt Capital pointed out in a post on the X platform on April 13: "Ethereum's dominance is very close to setting a new historical low." He added:
"Ethereum's dominance needs to hold this green area to improve its market dominance in the coming months."
ETH market dominance percentage. Source: Rekt Capital
Currently, Ethereum's market share is at its lowest level since 2019-2020. Meanwhile, in terms of market capitalization, Ethereum's closest competitor, Ripple (XRP), has seen its dominance rise by over 200% during the same period.
Its main layer one blockchain competitors, Binance Smart Chain (BNB) and Solana's token, have seen their market dominance increase by 40% and 344%, respectively, since 2023.
Several reasons for this poor performance include: ETF fund outflows indicating weak institutional demand, a sluggish derivatives market, and intensified competition from other layer one blockchains.
By analyzing the total value locked (TVL) of competing blockchains, more issues facing Ethereum can be identified.
Although Ethereum still leads with a market dominance of 51.7%, this metric has dropped from 61.2% in February 2024. In contrast, Solana's dominance in TVL has increased by 172% during the same period.
Total locked value market share (%). Source: DefiLlama
Despite rebounding from recent lows, with the emergence of a classic (bearish) chart pattern, the ETH/USD trading pair is expected to resume its primary downward momentum.
The price movement of Ethereum over the past three weeks has formed a potential bearish flag pattern on the daily chart. As shown in the chart below, if the daily closing price falls below the lower boundary of the flag at $1,600, it will signal the beginning of a significant decline.
Based on the height of the flagpole, Ethereum's potential downside target price is $1,100, a 33% drop from the current price.
ETH/USD daily chart with potential bearish flag. Source: Cointelegraph/TradingView
At the same time, a key indicator to watch is the Relative Strength Index (RSI), which remains below the 50 level, indicating that the market trend is still leaning downward.
As reported by Cointelegraph, based on several other factors, ETH's price may eventually bottom out around $1,000.
Related: SEC delays decision on Grayscale Ethereum ETF staking.
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