The recent market rally has seen digital assets like Bitcoin and Ethereum appreciate significantly in value over the past few days. However, there have been a few who have been leaders in this regard, and Ethereum is one of them. The digital asset had rallied higher on the announcement that the merger would take place in September, but that’s not the only aspect where the second-largest cryptocurrency in the crypto market had seen a rebound.
Ethereum steals market dominance
Ethereum’s rally above $1,500 had caused its market cap to surge back above $190 billion. The digital asset had seen some of the biggest gains over the past few weeks, rallying more than 40%. This has resulted in the asset’s dominance growing across the industry.
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Although Ethereum still remains the second most dominant cryptocurrency, it has continued to gain ground over the past two days. This has led to it creeping into Bitcoin’s market cap as the pioneer cryptocurrency struggles to keep up with market gains.
Over the past few days, Bitcoin has seen its market dominance decline by more than 2%. This market share was quickly sucked up by Ethereum, whose dominance has increased over this period. It gained more than 2% to come from a 16% stray price to its current dominance of 18.9%.
ETH dominance adds 2% | Source: Market Cap ETH Dominance on TradingView.com
It is expected to take more market share from Bitcoin as its price continues to rise. However, it is still a long way from its all-time high, when its dominance in the 2017 bull market rose to as much as 32%.
ETH targets $1,700
Ethereum has now passed an important technical point. After trading below the 50-day moving average for most of the last month, ETH has flipped this technical level and is now sitting comfortably above it. The result was a full 180 degree reversal from bearish to bullish, especially in the short term.
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After defying the bears and rallying above $1,500 this week, it is now heading for the next key technical level. Even if the recovery trend continues, the bears have started to offer resistance at the $1,700 level. A break above this point is important for Ethereum in the short-term.
If Ethereum manages to break the $1,700 resistance, the next key level will be $1,936. This point ensures that there is no major resistance until $2,500. However, if the bears fail to clear $1,700, the digital asset could plummet to $1,300.
Featured image from The Guardian Nigeria News, chart from TradingView.com
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