Bitcoin dominance dives as Ethereum takes up more space
The recent market recovery has seen digital assets such as Bitcoin and Ethereum gain significant values over the past couple of days. However, there have been some who have been market leaders in this regard, and Ethereum is one of them. The digital asset had surged due to the announcement of the merger happening in September, but that is not the only aspect where the second largest cryptocurrency in the crypto market had registered an improvement.
Ethereum steals market dominance
Ethereum’s rally above $1,500 had seen its market cap grow above $190 billion again. The digital asset had posted some of the biggest gains in the past couple of weeks, with more than a 40% recovery. This has caused the asset’s dominance across the industry to grow.
Related reading | Liquidations pass $ 230 million as Ethereum barrels past $ 1400
Although Ethereum is still the cryptocurrency with the second largest market dominance, it has added more in the last two days. This has caused it to creep into bitcoin’s market cap as the pioneer cryptocurrency struggles to keep up with market gains.
Over the past couple of days, bitcoin has seen its market dominance drop by more than 2%. This market share was quickly absorbed by Ethereum, which has seen its dominance increase during this time period. It added more than 2% to go from hovering around 16% to its current dominance of 18.9%.
ETH dominance adds 2% | Source: Market Cap ETH Dominance on TradingView.com
It is expected to steal more market share from bitcoin as its price continues to grow. However, it is still some way off its all-time high, which had seen its dominance rise as high as 32% back in the 2017 bull market.
ETH sets sights on $1,700
Ethereum has now broken above an important technical point. After trending below the 50-day moving average for most of last month, ETH has reversed this technical level and is now sitting comfortably above it. The implication of this has been a complete 180-degree turn from bearish to bullish, especially in the short term.
Related reading | The worst may be over when the crypto market adds more than $100 billion
After defying the bears and getting above $1,500 this week, it is now heading for the next important technical level. Even as the recovery trend continues, the bears have started to raise resistance at the $1,700 level. A break above this point is important for Ethereum in the short term.
If Ethereum is able to successfully break the $1,700 resistance, the next important level will be $1,936. This point ensures that there is not much resistance until $2500. However, a failure to beat the bears at $1,700 could see the digital asset spiral down to $1,300.
Featured image from The Guardian Nigeria News, chart from TradingView.com
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