Ethereum’s dominance in the crypto market has fallen to 7.18%, a level close to its historic low. A bearish chart pattern now suggests a possible correction down to $1,100 in the coming weeks.

On April 9, the Ethereum market share of the overall crypto market capitalization hit 7.18%, a multi-year floor close to its historic low of 7.09% recorded in September 2019.

This dramatic drop reflects the ongoing erosion of Ethereum’s influence against its direct competitors.

Crypto analyst Rekt Capital recently warned that “Ethereum dominance is about to reach new historic lows“. He emphasizes the crucial importance for Ethereum to defend its current position in order to hope to regain ground in the coming months.

While Ethereum weakens, its rivals are making significant progress. XRP has seen its market share soar by more than 200% since 2019.

Similarly, Solana has strengthened its position with an impressive 344% increase in dominance since 2023, while BNB Chain has progressed by 40% over the same period.

Technical analysis of the ETH price reveals the formation of a “bearish flag” pattern on the daily chart, generally a signal predicting the continuation of the downtrend.

A daily close below the $1,600 threshold would confirm this scenario and could trigger a strong correction.

This technical pattern, whose target is calculated from the height of the flagpole, suggests a potential drop to $1,100, a decrease of 33% from current levels. The Relative Strength Index (RSI) also remains below 50, reinforcing the bearish outlook.

Several factors explain this weakness in Ethereum: lackluster institutional demand with negative ETF flows, a sluggish derivatives market, and increased competition from alternative blockchains.

Ethereum’s total value locked (TVL) has also declined, dropping from 61.2% in February 2024 to 51.7% today.

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In sum, Ethereum’s decline occurs within a broader context of questioning its model. Between criticisms from influential figures like Peter Brandt, who calls ETH “worthless trash,” and concerns about its tokenomics, certain strategic choices may well have hastened its fall, making the future of the pioneering smart contract blockchain more uncertain than ever.