The recent market rally has seen digital assets such as Bitcoin and Ethereum rise significantly in value over the past couple of days. However, some have been market leaders in this regard, and Ethereum is one of them. The digital asset had rallied due to the announcement of the merger in September, but that is not the only aspect where the second largest cryptocurrency in the crypto market has recorded a recovery.
Ethereum steals market dominance
Ethereum’s rally above $1,500 had seen its market capitalization surpass $190 billion again. The digital asset has seen some of the largest gains in the past two weeks, rallying over 40%. This has seen the asset’s dominance in the industry grow.
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Although Ethereum still remains the cryptocurrency with the second market dominance, it has added more over the past couple of days. This has seen it slip into bitcoin’s market capitalization as the pioneering cryptocurrency struggles to keep up with market gains.
Over the past two days, bitcoin has seen its market dominance shrink by more than 2%. This market share was quickly absorbed by Ethereum, which saw its dominance increase during this period. He added over 2% to go from around 16% to his 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 rise. However, it is still far from its all-time high, which saw its dominance climb to 32% during the 2017 bull market.
ETH targets $1,700
Ethereum has now passed an important technical point. After being below the 50-day moving average for most of the past month, ETH has reversed that technical level and is now sitting comfortably above it. The implication of this was a complete 180 degree turn from bearish to bullish, especially in the short term.
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After challenging the bears and recovering above $1,500 this week, it is now heading towards the next important technical level. Even though the rallying trend continues, the bears have started mounting resistance at the $1,700 level. A break above this point is important for Ethereum in the short term.
If Ethereum manages to beat the resistance at $1,700, the next important level becomes $1,936. This point ensures that there is not much resistance until $2,500. However, a failure to beat the bears at $1,700 could send the digital asset down to $1,300.
Featured image from The Guardian Nigeria News, chart from TradingView.com
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