Ethereum market share approaches lowest in 5 years… Possible drop to 1,000 dollars raised

Ethereum is rapidly losing its position in the cryptocurrency market. As the market share recently approaches its lowest point in five years, warnings of a price decline are also growing.

According to CoinMarketCap, Ethereum's market share fell to 7.18% as of April 9. This is only 0.09%p away from the all-time low of 7.09% recorded in September 2019. Market analyst Rekt Capital diagnosed that “Ethereum's market share is very close to its historical bottom,” and if this level is not maintained, it could lead to a long-term weakening of its position.

Rivals of Ethereum, XRP and Solana, have shown contrasting trends, each recording a 200% and 344% increase in market share during the same period. BNB Chain also expanded its share by more than 40% since 2023. On the other hand, Ethereum is unable to break out of a downward trend due to various factors such as a decrease in institutional investment, weak inflows of exchange-traded funds (ETFs), contraction in the derivatives market, and intensified competition among Layer 1 blockchains.

In terms of total value locked (TVL), Ethereum's market dominance is also shaky. The TVL share that was 61.2% last February decreased to 51.7% in April, whereas Solana surged by 172% during the same period, indicating a clear upward trend.

Technical analysis is also confirming a bearish signal. Ethereum's recent daily chart shows the formation of a 'Bear Flag' pattern, and analysis suggests that if the lower support level of this pattern at $1,600 breaks, further decline to $1,100 is possible. This represents about a 33% drop from the current price. The Relative Strength Index (RSI) also remains below 50, suggesting that the downward trend is still valid.

Cointelegraph warned that Ethereum could drop to as low as $1,000 if various indicators are not favorable. As the landscape of the cryptocurrency market changes rapidly, Ethereum seems to need to respond more proactively to changes in market structure to regain its leading position.