High Ethereum (ETH) Dominance: What Does It Mean For Bitcoin (BTC)
In the lead up to The Ethereum Merge, Bitcoin (BTC) kept losing its share of the crypto market value. On the other side, the optimism around Ethereum (ETH) earned the cryptocurrency a significant market dominance. However, with the prices dropping after The Merge completion, Ethereum dominance is dropping, potentially indicating buy opportunity for Bitcoin as well. Meanwhile, BTC price appears to be on a freefall with the price dropping to below $19,000.
Short Ethereum Rally Could Be Good For Bitcoin Buying Too?
Recent behavior shows that strong buying pressure around ETH could create an opportunity to buy Bitcoin as well. This is more so whenever Ethereum surges by over 20%. With the recent price behavior, there could be a strong possibility of price decline in Ethereum and Bitcoin. Both the top cryptocurrencies have in the recent times showed declining pattern whenever ETH dominance rose above 20%.
During the middle of August, Bitcoin price was on a declining trend when Ethereum dominance exceeded 20%. Similarly, Ethereum was falling at around August 1, posing a buying opportunity. According to Crypto Quant statistics, this situation could portray a good time to enter a position.
“If the ETH dominance rises by more than 20%, it provides a good timing to enter the short position. Two recent signs of indicators have occurred, indicating a strong fall signal. If you use the two signals properly, you can prepare for the down trend.”
More Drop In Prices Ahead?
This trend is actually reflecting in the sudden drop in crypto prices in last few hours. While BTC is down nearly 6% in last 24 hours, ETH dropped in value by close to 8%. As of writing, Ethereum (ETH) price stands at $1,336.99, down 6.96% in the last 24 hours, according to price tracking platform CoinMarketCap. Bitcoin, on the other hand, is trading at $19,119. It remains to be seen if the crypto assets will drop further.
At the current levels, Ethereum dominance based on market cap is nearly 18.50% while that of Bitcoin is 41.02%. For close to one week before The Merge, ETH share was above 20%. This is the highest peak ETH dominance in recent times, with the highest share of market value being 21.59%.
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