Ethereum’s market share is slipping fast, and if the charts are right, its price could be next. Ether (ETH-USD) now trades around $1,600, but analysts are flagging a classic bear flag pattern that could drag it as low as $1,100 in the coming weeks. According to Cointelegraph, the flagpole projection points to a potential 33% slide. That’s not just a dip—it’s a warning shot.
ETH Loses Ground to Rivals in a Big Way
Zooming out, Ethereum’s dominance in the crypto market has fallen to 7.18%, hovering just above the all-time low of 7.09% set back in 2019. While ETH struggles, other layer-1s are on the rise. XRP’s (XRP-USD) dominance has surged 200% since late 2023, Solana’s (SOL-USD) is up 344%, and BNB’s (BNB-USD) by 40%. Ethereum still leads in total value locked (TVL), but even that metric is shrinking. It’s now at 51.7%, down from 61.2% in February, while Solana’s has jumped 172%.
On-chain metrics are equally grim. Institutional appetite looks weak. ETF flows have turned negative. And derivatives activity remains underwhelming. With a Relative Strength Index (RSI) below 50, momentum still favors the bears.
Ethereum Could Still Find Its Edge in AI
But it’s not all doom and gloom. Former Ethereum core dev Eric Connor thinks ETH’s real moonshot lies outside finance. “Ethereum’s biggest mainstream moment is waiting in the wings with AI,” he said on X. With Big Tech’s AI models shrouded in secrecy, Connor argues Ethereum’s transparency, open smart contracts, and token economics could offer a more accountable path.
That vision includes AI agents running directly on Ethereum—automated bots that analyze markets, create art, or help users manage wallets via chat. Connor believes Ethereum’s ethos of openness and decentralization makes it the perfect match for building more ethical AI systems.
If ETH closes below $1,600, that bear flag could kick in quickly. But longer-term, Ethereum might still play a central role in shaping AI’s future—if it can survive the market test now staring it down.
At the time of writing, Ether is sitting at $1,617.31.
