Ethereum’s price has sharply declined relative to Bitcoin, now trading at 0.01890 BTC—its lowest point since January 2020 and an 80% plunge from its peak in December 2021. This downward trajectory comes amid a steady erosion of Ethereum’s market share across critical segments of the crypto industry.
Data indicates Ethereum’s decentralized platforms processed $56 billion worth of transactions in April, moving notably behind Solana, which reached $72 billion. Further pressure is mounting from the rapid growth of layer-2 (L2) networks, designed to improve speed and scalability without sacrificing Ethereum’s security.
Notably, Coinbase’s Base, an L2 network, handled transactions totaling around $20 billion in April alone. Arbitrum followed with roughly $14.3 billion, and the newer entrant, Unichain, recorded volumes of $3.4 billion in the same month. Transactions channeled through these layer-2 platforms would previously have been handled directly by Ethereum, thereby diminishing its transaction share drastically.
Simultaneously, Bitcoin has strengthened its leading position in the broader crypto marketplace, now commanding a dominance of 63%. This figure has surged notably from its earlier low of 18% at the beginning of the year and currently stands at its highest point since November 2021. Ethereum, conversely, has experienced a consistent shrinkage, with its market dominance now approaching just 7%—a threshold it last touched in April 2018.
Technical analysis reveals further bearish indicators. Ethereum remains well beneath both its 50-week and 100-week moving averages against Bitcoin, highlighting a sustained negative sentiment. The Money Flow Index (MFI) has also plunged into oversold territory, currently at 14, signaling minimal buying interest and heavy selling pressure.
Perhaps most critically, Ethereum’s chart displays a clear inverse cup-and-handle formation—a bearish continuation pattern typically preceding further declines. The pattern, characterized by a rounded top and a distinct level of horizontal support, strongly suggests additional downward movements could be imminent.
In the event this bearish scenario unfolds, analysts have identified initial significant support at approximately 0.0070 BTC—Ethereum’s December 2016 low. Should prices break below this benchmark, further deterioration toward Ethereum’s all-time low at 0.0019 BTC becomes possible.
