Ethereum faces Continued Decline Against Bitcoin
Ethereum’s price has been falling sharply compared to Bitcoin. It recently hit 0.01890, the lowest since January 2020, and is 80% below it’s 2021 peak.
This drop reflects Ethereum’s weakening position in the crypto market. DeFi Llama data reveals that Ethereum’s network processed $56 billion in April, less than Solana’s $72 billion. Ethereum is also losing ground to layer-2 networks,which enhance scalability and speed.
- Base, a layer-2 by Coinbase, processed $20 billion in April.
- Unichain, launched in February, handled $3.4 billion.
- Arbitrum processed $14.3 billion.
Meanwhile, Bitcoin’s dominance has risen to 63%, up from 18% earlier this year. Ethereum’s market share has fallen to 7%, its lowest since April 2018.
Technically, the ETH/BTC pair has dropped 80% as December 2021. It remains below key moving averages. The Money Flow Index is at an oversold level of 14, and the Average Directional Index shows strong bearish momentum at 48.75.
an inverse cup and handle pattern suggests further downside. If this plays out, the next level to watch is 0.0070. A drop below that could lead to a retest of the all-time low at 0.0019.
