Ethereum's Market Share Drops: Is $1100 Next for ETH?

Ethereum is losing ground in the crypto market. On April 9, its market share fell to 7.18 percent. That’s dangerously close to the all-time low of 7.09 percent recorded in 2019.

This drop reflects growing pressure from competing blockchains and a lack of confidence among investors.

If you're holding ETH or thinking about buying in, you should understand what’s driving this decline.

Ethereum’s Dominance Is Shrinking

Ethereum once held a strong lead in smart contracts and decentralized finance. Now it’s struggling to maintain relevance.

You’re seeing:

• Fewer users locking funds into Ethereum protocols

• More developers choosing other chains

• Reduced trading volume in ETH futures

Solana, XRP and BNB Chain are all gaining market share while Ethereum falls behind.

Technical Analysis Shows a Bearish Flag

ETH’s daily price chart shows a bearish flag pattern. This is a signal that the current downtrend may continue.

If Ethereum closes below $1600, the pattern confirms. Based on the flag’s height, a move down to $1100 becomes likely.

The Relative Strength Index (RSI) is also below 50. This shows that buyers are not in control.

Competing Chains Are Gaining Ground

Ethereum isn’t just declining on its own. Its competitors are growing fast. Here's how some of them compare:

• Solana has seen a 344 percent increase in market share since 2023

• XRP gained over 200 percent since 2019

• BNB Chain added 40 percent in the same period

These platforms are faster, cheaper and easier to use. That’s attracting users and developers away from Ethereum.

The question is no longer just “Is Ethereum good?” but “Is it still the best option?”

Total Value Locked (TVL) Is Falling

TVL shows how much money is being used in decentralized apps. Ethereum has always led here, but now it’s losing ground.

In February 2024, Ethereum made up 61.2 percent of all DeFi TVL. Today, it holds only 51.7 percent.

That 10 percent drop happened in just a few months. This shows real capital is moving out of Ethereum’s ecosystem.

Projects like Arbitrum, Optimism and Avalanche are now seeing increased activity and funding.

Institutional Demand Has Dropped

Ethereum isn’t attracting large investors like it used to. ETF inflows are down. Hedge funds are shifting attention to Bitcoin and other assets.

Without strong institutional demand, ETH lacks the support it needs to hold current prices. You can see this in the derivatives market:

• Futures volume is low

• Funding rates are flat or negative

• Traders are not betting on a big rally

Without institutional backing, ETH becomes more vulnerable to retail sentiment and technical breakdowns.

Public Sentiment Is Mixed

Not all traders are bullish on Ethereum anymore. Some well-known analysts have shared sharp criticism.

Peter Brandt, a veteran chart analyst, recently called ETH “worthless trash.” While this is an extreme view, it reflects how confidence in Ethereum is slipping.

It’s not just critics either. Even longtime supporters are now questioning Ethereum’s direction and long-term potential.

Ethereum’s Challenges Are Mounting

Ethereum is facing multiple problems at once. None of them are fatal by themselves, but together they paint a bleak picture.

• Gas fees remain high on mainnet

• Rollups are still confusing for new users

• Development takes longer than expected

• Tokenomics changes haven't improved price stability

The switch to proof-of-stake was supposed to solve many of these issues. So far, it hasn’t.

If users don’t see improvements soon, they’ll continue moving to chains that offer better performance and lower costs.

What You Should Watch

If you’re holding ETH, you need to pay attention to several key signals:

• Price Support at $1600
  If ETH breaks below this level, it could fall quickly.

• TVL Trends
  Track whether more funds are leaving Ethereum.

• Volume and Open Interest
  Declining trading activity usually leads to weaker prices.

• Competing Chains
  Solana, Avalanche, and others are drawing in users fast.

Each of these gives you clues about where ETH is heading next.

What You Can Do

If you're invested in Ethereum, now is the time to act based on clear data.

• Set alerts around $1600 and $1100 price levels

• Reassess your portfolio’s risk exposure to ETH

• Look at faster chains gaining momentum

• Consider if Ethereum still fits your long-term goals

You don’t need to panic, but you do need to stay informed.

What Happens If ETH Falls to $1100?

A drop to $1100 would be a big correction from current levels. That’s about a 33 percent loss.

This move would shake investor confidence further. Some long-term holders may sell. New buyers may wait for a clearer signal before entering.

However, if Ethereum holds that level and starts building again, it could also act as a strong base for recovery.

Will Ethereum bounce back? That depends on upgrades, adoption, and whether users believe it still leads the smart contract space.

Final Thoughts

Ethereum is at risk of falling below a key price level. At the same time, its market share is shrinking. Other chains are catching up fast.

If you’re following ETH closely, keep an eye on support levels, TVL data, and institutional interest. These are the clearest indicators of what comes next.