Ethereum’s influence within the cryptocurrency market has seen a marked decrease, dropping to 13.36% from its prior level of 18.85% in late 2023. This significant dip raises questions about the sustainability of Ethereum’s position within the crypto ecosystem and potential further declines. Analyst Benjamin Cowen has noted the persistent selling pressure impacting ETH’s market dominance as it struggles to maintain higher levels.
Ethereum’s Market Dominance: Historical Trends and Resistance Levels
The company’s market dominance has faced resistance at the 16% and 22% levels several times since 2018, suggesting long-term selling pressures at these levels. The current decline is part of a descending triangle pattern, traditionally seen as bearish, with ETH forming lower highs against consistent support. If the market share continues to erode, analysts believe it could face further challenges ahead.
Potential Fall to 9% Market Dominance: Next Support Level?
Analysts speculate that Ethereum could hit a critical support level around 9-10% in market dominance if current selling trends persist. Such a decline would signal an intensified lack of buying interest. The market position remains under strain, especially if broader market trends continue to favor other altcoins or Bitcoin in the coming months. The 9% level may prove crucial, as it could act as a long-term support that stabilizes ETH’s dominance, paving the way for a potential recovery.
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Ethereum’s Price and Trading Activity
As of October 2024, the currency is trading around $2,542, reflecting minor short-term gains but an overall 3.11% weekly decline. The 24-hour trading volume sits at approximately $17.6 billion, indicating significant market activity despite the decreasing dominance. Ethereum’s Total Value Locked (TVL) has been recorded at $47.91 billion, underscoring the network’s ongoing use, with active addresses reaching around 372,911. This consistent usage and trading volume could offer a buffer against further rapid declines in dominance.
Net Flow Data: Short-Term Selling Pressure and Long-Term Accumulation
Recent data shows an uptick in Ethereum’s net inflows over the last 30 days, suggesting that short-term sellers are moving assets onto exchanges, often a precursor to selling or profit-taking. However, longer-term net outflows point to possible accumulation as investors withdraw ETH from exchanges, potentially storing it for future gains or staking. This trend indicates that while there may be near-term bearish sentiment, Ethereum holders remain optimistic about its long-term prospects.
Looking to 2025: Could Ethereum See a Rebound?
While Ethereum may face more downward pressure in the short term, analysts believe it has potential for recovery in 2025. If ETH manages to stabilize around the 9% dominance level, it could set the stage for a rebound, driven by potential market shifts or renewed investor interest. The crypto landscape remains volatile, but Ethereum’s established position and network utilization keep it a significant player, even amid fluctuating market share.
Ethereum’s decline in dominance raises critical questions about its market trajectory, especially as competition from other cryptocurrencies intensifies. Whether ETH can regain lost ground may depend on broader market conditions, technological advancements, and continued investor confidence in its long-term value.
