Ethereum [ETH], the second-largest digital currency by market capitalization, is encountering difficulties in upholding its predominant position in the broader cryptocurrency market.
Despite the overall uptrend in the total market capitalization of cryptocurrencies (excluding stablecoins), ETH’s share in this market is dwindling.
Presently, Ethereum’s market dominance hovers just above 15%, hinting at a pivotal juncture for ETH. With its market capitalization fluctuating from $546 billion to the current $316 billion, the struggle to reclaim dominance poses uncertainties.
An increment in the total market capitalization alongside a decrease in ETH’s share may imply a divergence, often indicating a shift or persistence of a trend. The ambiguity surrounding whether ETH will ascend or descend remains a significant concern, but what do other indicators suggest!
ETH Maintaining Position above Weekly SMAs
Ethereum is firmly entrenched above its weekly simple moving averages (SMAs), painting a bullish picture. ETH continues to outpace key SMAs, such as the 8SMA and 20SMA, indicating robust momentum.
This is an encouraging signal that Ethereum could prolong its recovery, rebounding from a significant downturn when its price plummeted to $2,100.
The fact that ETH remains above these SMAs implies that both short-term and long-term uptrends on the weekly timeframe remain unbroken. Nevertheless, traders are advised to exercise caution given the anticipated volatility in the upcoming Q4.
Despite a decline in ETH’s market dominance, these metrics bolster the argument that Ethereum remains on a bullish trajectory.
Profits from Astute Whales
Smart crypto investors are leveraging these fluctuations, further reinforcing the bullish outlook. Some adept traders have reaped substantial profits through purchasing Ethereum during downtrends.
For instance, one whale, 0xe0b5, has consistently engaged in swing trading ETH, boasting a flawless 100% success rate across eight trades since August 12. This whale acquired over 10,000 ETH valued at more than $26 million and sold at higher prices, amassing over $1.56 million in profits.
Another notable whale, 0xc08B, purchased 11,529 ETH for over $28 million at $2,485 and offloaded them at $2,618 just three days later, securing a $1.5 million profit.
These transactions underscore the confidence of major traders in Ethereum’s potential for increased returns despite recent dominance challenges.
Increase in Daily ETH Burn Rate
Moreover, the daily volume of ETH burned has surged by 163% in the past week, presenting another optimistic signal for Ethereum’s future valuation.
The ETH price and daily ETH burnt graph exhibit a distinct pattern, with the volume of ETH burned escalating before price surges in January and October 2023.
By decreasing the available supply, this burning of ETH has the potential to propel prices higher if demand remains constant. As the burn rate escalates, the likelihood of ETH’s price appreciating also rises.
Despite the ongoing struggles with market dominance, Ethereum’s resilient performance on critical technical fronts, whale activities, and the escalating burn rate collectively point to a buoyant outlook for ETH’s price, notwithstanding its diminishing dominance in the market.