Key Points
- Ethereum’s market dominance is dwindling, despite a rising total market cap.
- ETH’s position above weekly SMAs and increased ETH burning hint at a potentially bullish future.
Despite its position as the second-largest cryptocurrency by market cap, Ethereum is finding it tough to maintain its market dominance.
The total market cap of cryptocurrencies, excluding stablecoins, is on an upward trajectory. However, Ethereum’s share is on the decline.
Ethereum’s Market Position
At this time, Ethereum’s market dominance hovers just above 15%, indicating a potential crucial juncture for ETH. Its market cap has seen significant fluctuations, ranging from $546 billion to its current $316 billion.
This divergence between the total market cap and ETH’s share could suggest a trend reversal or continuation. The direction of ETH’s movement is currently uncertain.
ETH’s Performance and Whale Activity
Despite a dip in market dominance, Ethereum is holding above its weekly simple moving averages (SMAs), indicating a bullish outlook. Ethereum’s ability to stay above these SMAs suggests that both short-term and long-term upward trends remain intact.
Large traders, often referred to as ‘whales’, are capitalizing on these market fluctuations and making significant profits by purchasing Ethereum during its dips.
For instance, one whale, known as 0xe0b5, has consistently swing-traded Ethereum with a 100% success rate across eight trades since August 12, earning over $1.56 million in profit.
Meanwhile, another whale, identified as 0xc08B, bought 11,529 Ethereum worth over $28 million and sold it at a higher price just three days later, securing a $1.5 million profit.
Increase in Daily ETH Burning
The daily quantity of Ethereum being burned has surged by 163% in the past week, which could be seen as another positive sign for Ethereum’s future price.
The burning of Ethereum reduces the overall supply, potentially pushing the price higher if demand remains consistent. As the burn rate increases, so does the likelihood of Ethereum’s price rising.
Despite challenges in maintaining market dominance, Ethereum’s strong performance on key technical levels, whale activity, and the rising burn rate all suggest that Ethereum’s price may continue to ascend.
These factors indicate a bullish future for Ethereum, even though its market dominance might be waning.
