Ethereum price dropped for the third consecutive day, even as the biggest American bank embraced its network. ETH token dropped to a low of $2,950, down sharply from last week’s high of $3,445. It has plunged by 40% from its highest point this year and formed a risky pattern that points to further downside.
Ethereum Has Become the King of RWA
ETH price remained on edge even as Ethereum became the king of the Real-World Asset (RWA) tokenization industry. Data compiled by RWA shows that it has become the favorite chain among the biggest RWA issuers.
Its RWA total value locked (TVL) has jumped to over $12 billion, a significant figure in an industry with combined assets exceeding $18 billion. This amount gives it nearly 70% market dominance.
Ethereum has been selected by some of the biggest companies in the RWA industry, like Securitize, Ondo Finance, Centrifuge, and WisdomTree.
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Most importantly, JPMorgan selected its network for its first on-chain fund, which it seeded with $100 million. This is notable because JPM is the largest American bank, with over $4 trillion in assets under management (AUM).
Selecting Ethereum is a validation for the network, as the company had hundreds of options to choose from. Some of the alternatives it would have considered are Solana, BSC, Aptos, and Base.
JPM selected Ethereum a few weeks after the network activated the Fusaka upgrade. Fusaka introduced new features, including peer data availability sampling (PeerDAS), blob throughput scaling, and lower costs for layer-2s.
Ethereum Market Share Has Grown in Other Areas
Ethereum has also gained a substantial market share in other areas of the crypto industry. It dominates the decentralized finance (DeFi) sector with over $139 billion in assets and a market dominance of 76%. Solana, the second-biggest chain, has $18.9 billion.
Ethereum also has a leading market share in the stablecoin industry with over $166 billion in assets. Its market dominance is about 53%. The same is true in other areas, such as gaming and non-fungible tokens.
Therefore, the main reason why the ETH price dropped despite this good news is its correlation with the broader crypto market, which has retreated in the past few weeks. It fell as investors waited for the BoJ’s upcoming decision and key macro data, including US jobs and inflation numbers.
Ethereum Price Has Formed a Risky Pattern
Technicals suggest that the ETH price has more downside to go in the coming weeks. It has slowly formed an ascending channel in the past few days. This channel is part of the bearish flag pattern, which often leads to further downside.
Ethereum price has also remained below the Supertrend indicator, indicating the bearish outlook remains. It has also plunged below the 50% Fibonacci Retracement level, while the Relative Strength Index (RSI) has pointed downwards.
Therefore, the most likely scenario is that the coin continues to fall as sellers target the key support at $2,628, its lowest point in November. A move below that level will signal further downside, potentially to the psychological $2,000 level.
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