Ethereum’s price has been undergoing a notable decline against Bitcoin, accompanied by an unusual chart pattern that hints at additional downturns ahead.

Ethereum (ETH) has dropped to 0.01890, reaching its lowest point since January 2020 and now sits 80% below its all-time high in 2021.

This decline aligns with Ethereum’s decreasing market share in key areas of the cryptocurrency landscape. Data from DeFi Llama reveals that protocols on its network processed $56 billion in April, falling short of Solana’s (SOL) $72 billion.

Furthermore, Ethereum is ceding ground to layer-2 networks that aim to improve scalability and efficiency without sacrificing security.

Base, a layer-2 network created by Coinbase, facilitated transactions worth $20 billion in April. Additionally, Unichain, a newly launched L2 network from February, managed $3.4 billion, while Arbitrum processed $14.3 billion. Ideally, these transactions would have been executed on Ethereum.

At the same time, Ethereum’s standing has weakened even more as Bitcoin’s market dominance has surged. Bitcoin now holds a 63% market share, recovering from a year-to-date low of 18%, marking its highest share since November 2021. In contrast, Ethereum’s dominance has fallen to 7%, its lowest since April 2018.

Technical Analysis of Ethereum Price

The weekly chart shows that the ETH/BTC pair reached a peak of 0.08810 in December 2021 and has since plummeted 80% to its current value of 0.01890.

Ethereum is presently below both the 50-week and 100-week moving averages. Moreover, the Money Flow Index continues to drop, now at an oversold level of 14.

Additionally, the Average Directional Index has increased to 48.75, indicating that bearish momentum is still potent.

Crucially, the pair has formed an inverse cup and handle pattern, a widely recognized bearish continuation signal. This chart pattern features a horizontal support line and a rounded top, often predicting further declines. If this pattern unfolds, the next level to watch is 0.0070, which served as the floor in December 2016. A decline below this could lead to a retest of the all-time low at 0.0019.