Ethereum [ETH], the cryptocurrency holding the second-largest market cap, is encountering obstacles in upholding its supremacy in the wider world of digital currencies.
While the overall market capitalization of cryptocurrencies, barring stablecoins, exhibits a consistent upward trajectory, the share held by ETH in this market is dwindling.
Presently, Ethereum’s market dominance hovers slightly above 15%, indicating a pivotal juncture for ETH. The fluctuating market cap of ETH – currently at $316 billion down from $546 billion – highlights the challenge it faces in reclaiming dominance.
An uptick in the total market cap coupled with a drop in ETH’s share might suggest a divergence, a common sign of a potential change in trend direction. The uncertainty surrounding ETH’s future trajectory remains a pressing concern, but what do other performance metrics reveal!
Ethereum Holding Above Weekly SMAs
Ethereum is maintaining a solid position above its weekly simple moving averages (SMAs), painting a bullish picture. ETH continues to stay atop crucial SMAs such as the 8SMA and 20SMA, indicating robust momentum.
This resilience hints at Ethereum’s potential to extend its recovery journey, having bounced back from a substantial decline when its value hit $2,100.
The ability of ETH to remain above these SMAs signifies the preservation of both short-term and long-term upward trends on a weekly basis. However, traders are advised to stay vigilant as the upcoming Q4 is anticipated to bring about volatility.
Despite the dip in ETH’s market dominance, these indicators advocate that Ethereum is still on a bullish trajectory.
Profitable Moves by Intelligent Investors
Savvy investors are leveraging these price fluctuations, further bolstering the optimistic outlook. Certain shrewd traders have generated substantial profits by purchasing Ethereum during downturns.
For instance, a notable investor represented by 0xe0b5 has consistently engaged in swing trading with ETH, achieving a flawless success rate across eight transactions since August 12. This investor acquired more than 10,000 ETH valued at over $26 million and sold them at higher prices, amassing profits exceeding $1.56 million.
Another significant player, 0xc08B, bought 11,529 ETH amounting to over $28 million at $2,485 and sold them for $2,618 just three days later, pocketing a $1.5 million profit.
These actions signify that prominent traders maintain faith in Ethereum’s potential for higher returns despite its recent struggles with dominance.
Gradual Rise in Daily ETH Burnt
Furthermore, the daily volume of burned ETH has surged by 163% in the last week, presenting another favorable omen for Ethereum’s future valuation.
Observing the chart depicting ETH prices and daily burnt ETH, a clear correlation emerges, with an upsurge in burnt ETH preceding price hikes in January and October 2023.
By reducing the total supply, the burning of ETH can propel prices upwards if demand remains steady. As the burn rate escalates, so does the probability of ETH’s value surging.
Despite the existing hurdles in achieving market dominance, the strong performance of ETH on critical technical fronts, whale activities, and the increasing burn rate collectively hint towards a promising uptrend in Ethereum’s valuation.
These factors suggest a bullish outlook for ETH’s future, notwithstanding its dwindling market share dominance.