The crypto market is facing a decline, with increased fear coming from trade tensions and the effects of President Trump’s Bitcoin Reserve order. Ethereum, a leader in the altcoin sector, has seen a significant decline, dropping nearly 14% over the past week. This decline has pushed its value below the critical $2,000 mark, hitting a multi-year low against Bitcoin. Investors are now left wondering whether Ethereum’s price will bounce back above $2,000 or continue its bearish trajectory.
Ethereum’s Dominance Drops to 2020 Level
Ethereum has been experiencing a notable downward trend, as seen by a drop in open interest and significant market liquidations. Recent data from Coinglass reveals that Ethereum has seen a total of $71 million in liquidations. This includes $44 million from buyers and $27 million from sellers. Moreover, Ethereum’s open interest has taken a sharp hit, falling by 2% to a new low of approximately $17.65 billion.
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Additionally, Ethereum’s performance against Bitcoin has been weakening, reaching its lowest point in over five years. According to Trading View, the ETH/BTC trading pair dipped to 0.02267, marking its lowest since May 2020. This decline illustrates Ethereum’s decreasing strength compared to Bitcoin and suggests a move toward bearish sentiment.
The market dominance of Ethereum has also declined, now standing at 8.6%, the lowest since Feb 2020. On the other hand, Bitcoin has been strengthening its market presence. Since 2022, Bitcoin’s market share has climbed to 61.1%, indicating a significant growth streak.
Interestingly, a comparison of value over time shows that, in 2017, one could exchange one Bitcoin for about six ETH. Today, that same Bitcoin could fetch around 42 ETH, showing Ethereum’s steep decline in value relative to Bitcoin over the years.
Also read: Bitcoin Price Prediction 2025, 2026 – 2030: Will BTC Price Hit $200,000?
Over the past year, investors have really favored Bitcoin, somewhat overlooking Ethereum despite its focus on utility. Meanwhile, Solana has also started to draw attention. This trend shows a strong preference for Bitcoin’s stability and Solana’s promising future, making it tougher for Ethereum to stand out.
What’s Next for ETH Price?
Ethereum’s price has been plummeting after breaking below the key $2,000 mark. It’s now facing strong downward pressure and struggles around a key resistance line. At the moment, Ethereum’s price is at $1,874, having fallen 3.5% in just the 24 hours.
On the 1-hour price chart, the ETH/USDT pair is slightly below the EMA20 trend line, posing a potential obstacle. If Ethereum can stay above this level, it could help push the price back up toward $2,000. A climb above this could potentially lead to a high of $2,530.
However, if it remains below the EMA20 line, sellers might push the price down further to about $1,772. Despite this, the Relative Strength Index (RSI) at 45 hints at a possible recovery, indicating that there’s still buying interest at these lower levels.
