Ether’s (ETH) market may be very shut to hitting all-time lows as a traditional bearish chart sample hints at a deeper correction towards $1,100.
Ethereum’s market dominance retains falling
On April 9, Ethereum’s market dominance, or the measure of Ether’s share of crypto’s total market capitalization, hit a brand new multiyear low of seven.18%, in accordance to Cointelegraph Markets Pro and TradingView data.
This worth was merely a hair’s breadth above the all-time low of seven.09% reached in September 2019.
“Ethereum dominance is so very shut to registering new all-time lows,” stated standard crypto analyst Rekt Capital in an April 13 publish on X, including:
“Ethereum Dominance wants to maintain this inexperienced space to place itself to develop into extra market-dominant over the approaching months.”
ETH market dominance %. Supply: Rekt Capital
Ether’s market share is now at its lowest worth since 2019-2020. In the meantime, Ether’s closest competitor by way of market capitalization, XRP (XRP), has seen its dominance rise by over 200% over the identical timeframe.
Its high layer-1 rival tokens, BNB Chain’s (BNB) and Solana’s (SOL), have additionally seen 40% and 344% will increase of their market dominance since 2023.
Several reasons for this underwhelming performance embody weak institutional demand evidenced by unfavourable ETF flows, a sluggish derivatives market, and growing competitors from different layer-1 blockchains.
Extra bother for Ethereum may be discovered when analyzing the total value locked (TVL) of competing blockchains.
Though Ethereum stays the chief with a market dominance of 51.7%, this metric has decreased from 61.2% in February 2024. Compared, Solana’s dominance by way of TVL has elevated by 172% over the identical interval.
Whole worth locked market share (%). Supply: DefiLlama
ETH price “bear flag” targets $1,100
Ether price, or the ETH/USD buying and selling pair, is predicted to resume its prevailing bearish momentum regardless of recovering from current lows as a traditional (bearish) chart sample emerges.
Associated: Ethereum could be AI’s key to decentralization, says former core dev
Ether’s price motion over the previous three weeks is portray a doable bear flag pattern on the every day chart, as proven within the determine beneath. A every day candlestick shut beneath the flag’s decrease boundary at $1,600 would sign the beginning of an enormous transfer downward.
The flagpole’s top units the goal, placing Ether’s potential price drop goal at $1,100, or a 33% drop from the present price.
ETH/USD every day chart with potential bear flag. Supply: Cointelegraph/TradingView
In the meantime, one key indicator to keep watch over stays the relative energy index, or RSI, which remains to be beneath the 50 mark, suggesting that the market development nonetheless favors the draw back.
As Cointelegraph reported, ETH’s price might finally bottom out at around $1,000 based mostly on a number of different elements.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.