Ethereum Set To Explode According To Market Dominance, Crypto Analyst
August 04 2021 - 7:00PM
NEWSBTC
Crypto Analyst Nicholas Merten recently said in a video analysis
session on YouTube that Ethereum’s price is poised to explode.
Merten pointed out that price analysis really isn’t the reason that
the number 2 cryptocurrency is set to explode, but what the market
dominance shows that actually shows this. This shows through when
the cryptocurrency market dominance is measured. Merten believes
that current market trends are very similar to what was done in the
market back in 2017. Going back to when the last bull market had
started in 2017. Before fizzling out and turning into a full-blown
bear market by the time the middle of the year 2018 rolled around.
The current trends of higher lows that have been seen so far in the
market continue to mirror the cycle of 2015 when Ethereum had
started to show momentum in the market. Related Reading | How
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momentum had continued on for Ethereum straight through 2016 and
all the way into 2017, leading up to the bull cycle that had begun
in November 2017. Ethereum has so far maintained momentum despite a
variety of competition in the market. It continues to hold market
dominance around the 19% to 20% range. “This showcases that this is
a critical metric we need to watch for because we’re testing around
that 20% range. One-fifth of the market share going towards
Ethereum,” Merten said. The Key To Another Shoot-Up Market
dominance continues to be a good way to gauge how the price of a
coin is going to do in the crypto market. Number 1 cryptocurrency
Bitcoin, continues to maintain the majority market share, and as
such, continues to be the most valuable coin in the market. But
with Ethereum picking up more market share, there is no doubt that
ETH is becoming more of a valuable asset. At one point, Etheruem
had garnered as much as 32% market share. Showing how fast the
cryptocurrency is gaining value ahead of other coins in the market.
Related Reading | Why Another Wave Up For Altcoins Is Probable
According To BTC Dominance Also relevant is the fact that Ethereum
is much younger crypto than Bitcoin. Recently celebrating its fifth
year anniversary, Ethereum has continued outperformed number 1
crypto Bitcoin. Despite the latter being twice as old in the
market. Continuing further, Merten said, “This showcases that this
is a really critical metric we need to watch for. And that is a
huge psychological level because once we broke through that range,
we climbed all the way up here to 32% market dominance. An over 50%
increase of previous ownership of market share.” Ethereum Breaking
From Bitcoin Ethereum continues to see uptrends in the price
following the close of last weekend. The coin so far seems to be
dissociating from the price of bitcoin and charting its own course
upwards. Continuing to rally while the price of bitcoin experienced
dips following the latest rally. ETH price continued to rally while
BTC slowed down entering the new week | Source: ETHUSD on
TradingView.com As ETH continues to gain more market dominance, the
asset is more likely to rally at its own pace as opposed to
following the market trends of bitcoin. This would put Ethereum on
love ground with the pioneer cryptocurrency if the value of ETH
stops being reliant on the value of BTC. The price of ETH is
currently up 7.45% in the last 24 hours, to be trading at $2,678.06
according to CoinDesk. Featured image from Forex Academy, chart
from TradingView.com
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