Amid the lull in the bitcoin space, ethereum emerges as a pioneer, confidently charting its course. As the king of cryptocurrencies takes a breather following the approval of its ETF, ethereum is undeterred seeing a surge in both price and dominance, fueled by an influx of new users and the prevailing trend of self-custody.
Recent data from Santiment vividly illustrates the rise of ethereum. The platform's price dominance, which reflects its market share compared to all other cryptocurrencies, has seen a notable 22.4% increase in just one week.
ethereum's Remarkable Rise: Growing Community, Strong on Chain
This increase is not simply a passive spectacle; ethereum is actively attracting a staggering 89,400 new addresses daily, with an unprecedented 96,300 joining the ethereum community in a single day.
Source: Santiment
This push is not just about acquiring new participants; It's about retention. ethereum's exchange supply, which represents the amount available for sale, is approaching its all-time low of 8.05%. This change indicates a notable move towards self-custody and staking, mitigating the immediate risk of a substantial liquidation and strengthening ethereum's price floor.
Strength in the observed chain translates into tangible market action. Following a brief decline that tested the $2,500 support, ethereum not only stabilized but turned this once resilient level into a launching pad.
ethereum currently trading at $2,556 on the daily chart: TradingView.com
Analysts are now setting their sights on the $2,700 barrier as the gateway to unlocking a potential price rally, with FOMO (fear of missing out) traders expected to join the rally. Beyond this juncture, the horizon seems limitless, with $3,400 emerging as an attractive target.
Caution Amid Excitement: ethereum's Unpredictable Trajectory
However, amid the enthusiasm, an air of caution permeates the volatile crypto landscape. A break below the “hammer” formation that materialized on Monday has the potential to send ethereum plummeting towards the 20-day EMA (exponential moving average) at around $2,300.
Traders are on tenterhooks, meticulously monitoring these crucial levels to decipher the next trajectory of ethereum's journey.
An undeniable truth emerges: ethereum is casting off bitcoin's shadow and carving its own unique path. With growing dominance, a fervent user base, and a focus on self-custody, ethereum is laying the groundwork for future expansion.
Whether it reaches the projected pinnacle of $3,400 or heads toward an alternative destination, one certainty prevails: ethereum is an influential force and its narrative is only in its nascent stages.
History repeats itself.bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin dominance peaks before the halving and potentially marks a cycle top.
Altcoins are likely to outperform in the coming period. pic.twitter.com/ox36x2M5NG
—Michaël van de Poppe (@CryptoMichNL) January 15, 2024
Meanwhile, reinforcing ethereum's growing dominance over bitcoin, Michaël van de Poppe, founder and CEO of trading firm MNTrading, noted that bitcoin was falling behind ethereum in terms of total cryptocurrency market capitalization.
In a Jan. 12 post on Altcoins may perform better in the near future.
Featured image from Shutterstock
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