- Even though its overall market capitalization is increasing, Ethereum dominance is decreasing.
- ETH staying above all weekly moving averages is bullish.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is struggling to maintain its dominance in the broader cryptocurrency market.
While the overall market capitalization of cryptocurrencies, excluding stablecoins, is showing a long-term upward trend, ETH’s share of this market is decreasing.
Currently, Ethereum’s market dominance is just over 15%, indicating that ETH may be at a critical point. With ETH’s market capitalization currently fluctuating from $546 billion to $316 billion, its efforts to regain dominance are in question.
Source: IntoTheCryptoverse
An increase in total market capitalization while the share price of ETH is falling can indicate a difference, often signifying a reversal or continuation of a trend. Uncertainty about whether ETH will rise or fall remains a key issue, but what are other indicators telling us?
ETH remains above its weekly SMA.
Ethereum remains strong on the weekly simple moving average (SMA), providing a bullish outlook. ETH remains above major SMAs, including the 8SMA and 20SMA, suggesting strong momentum.
This is an encouraging sign that Ethereum can continue its recovery, as it rebounded from a major decline when the price reached $2,100.
ETH’s ability to exceed these SMAs indicates that the weekly short-term and long-term uptrends remain intact. However, traders should exercise caution as volatility is expected to occur in the upcoming fourth quarter.
Source: IntoTheCryptoverse
Despite ETH’s decline in market dominance, these indicators support the notion that Ethereum is still going strong.
Smart whales profit
Smart whales take advantage of these fluctuations to provide further support for their bullish outlook. Some smart traders have made significant profits by purchasing Ethereum during the decline.
One whale named 0xe0b5 has been consistently trading ETH swings with a 100% success rate in eight trades since August 12th. The whale bought more than 10,000 ETH worth more than $26 million and sold it at a higher price, making a profit of more than $1.56 million.
Source: Lookonchain
Another whale, 0xc08B, bought $28 million worth of 11,529 ETH at $2,485 and sold it for $2,618 just three days later, making a profit of $1.5 million.
This activity shows that large traders believe in Ethereum’s higher profit potential despite its recent struggle for dominance.
Increased daily ETH consumption
Additionally, the amount of ETH burned daily has increased by 163% in the past week, providing another positive signal for the future price of Ethereum.
The ETH price and daily ETH burn charts show a clear pattern of increasing ETH burns before the price rises in January and October 2023.
This burning of ETH reduces overall supply, which could push the price higher if demand remains stable. As the burn rate increases, the likelihood of ETH price rising also increases.
Read Ethereum (ETH) price prediction for 2024-2025
Source: Lookonchain
Despite the current market dominance difficulties, ETH’s strong performance at key technical levels, whale activity, and rising burn rates all suggest that Ethereum’s price will continue to rise.
These factors point to an optimistic future for ETH, even though its dominance in the market is decreasing.