Ethereum Price – Ethereum Market Dominance Hits Lowest Point Since 2021
Ethereum Price – Ethereum’s native token, Ether (ETH), has recently slipped below a key support level against Bitcoin (BTC), marking a worrying trend for the second-largest cryptocurrency by market capitalization. As of November 2024, ETH dropped to $3,167.42, while BTC remains strong at $90,946. This decline in ETH’s value has led top analysts to issue a stark warning: “Ethereum is dying a slow death.”
ETH/BTC Pair Breaks Critical Support Level
The latest downturn comes after the ETH/BTC pair broke below its long-standing ascending trendline support, which had acted as a market floor since 2016. This trendline had previously been the catalyst for notable rebounds, including a 300% rally between December 2020 and December 2021, and an astonishing 1,800% recovery between January 2017 and May 2017. However, the November 2024 drop saw ETH/BTC fall around 15% below this critical support level, accompanied by a noticeable uptick in trading volumes.
In technical analysis, a loss of support—particularly in a high-volume environment—signals strong selling pressure, which implies that ETH/BTC could continue to decline in the coming weeks. This trend is further exacerbated by increased trading activity, suggesting that further downward momentum is likely.
Tuur Demeester: Ethereum is Dying a Slow Death
According to Tuur Demeester, founder of Bitcoin hedge fund Adamant Capital, the breakdown of the ETH/BTC pair is indicative of a broader trend. He argued that Ethereum’s performance in 2024 has been lackluster, largely due to the success of Bitcoin exchange-traded funds (ETFs) in the United States, and the underperformance of Ethereum’s own spot Ethereum ETF.
With the launch of Bitcoin ETFs sparking a surge in Bitcoin’s popularity among both retail and institutional investors, capital has flowed away from Ethereum and into Bitcoin, further cementing the dominance of BTC. This shift is compounded by Bitcoin’s fourth halving in April 2024, which has made BTC even more appealing, while Ethereum’s ecosystem continues to struggle with challenges.
Solana’s Growing Influence Contributing to Ethereum’s Decline
In addition to the Bitcoin ETF impact, Solana (SOL), a leading competitor in the smart contract space, has continued to outpace Ethereum. The SOL/ETH pair has surged by more than 925% since December 2022, marking a significant shift in developer and investor interest towards Solana. This trend further pressures Ethereum’s market share, especially as Solana gains ground in decentralized finance (DeFi) and non-fungible tokens (NFTs).
Ethereum’s challenges have been compounded by political factors, as Donald Trump’s campaign raised the idea of making Bitcoin a strategic reserve asset in the U.S., largely ignoring Ethereum. These events have led to a significant decline in Ethereum’s market dominance, with its ETH.D metric now sitting at its lowest point since April 2021.
Ethereum Price May Drop 50% More in 2024
Technical indicators point toward a continued downtrend for Ethereum. The ETH/BTC pair is currently in the breakdown phase of an inverse cup-and-handle (IC&H) pattern, which is a bearish signal. The IC&H pattern, which typically indicates the loss of momentum in an uptrend, shows a rounded top followed by a brief upward consolidation before a significant downward move.
Should Ethereum fail to regain support, ETH/BTC is projected to drop to a target price of 0.017 BTC by the end of 2024. This represents a 50% decline from its current level. This target aligns with the key support level seen in the August 2019-January 2020 period, and could signal a further loss of value for Ethereum.
Possible Rebound: Can ETH Hold Support?
On the other hand, if ETH/BTC can hold its current support level of around 0.0317 BTC—which coincides with the 0.786 Fibonacci level—it may invalidate the bearish IC&H pattern. A strong rebound from this level could propel Ethereum towards 0.043 BTC, a key resistance point, by the close of 2024.
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