Ethereum’s recent bullish momentum has propelled the price to newer highs of late. In fact, it was less than 24 hours ago that the world’s largest altcoin managed to hit the $2,800-mark on the price charts, with ETH, at press time, continuing to trade close to that level.
While this surge was expected in the crypto-market thanks to ETH’s strong fundamentals, it also forces one to ask – What exactly is happening to BTC in the market and its ability to lead from the front?
Bitcoin’s dominance in the crypto-market is a well-known fact. The last price correction the altcoins collectively faced was when BTC dropped below the $50k price level. Since then, while many altcoins were able to pull off an inspiring recovery and even go on to achieve new highs, BTC’s price has continued to languish well below the $55k-resistance level – a move diametrically opposed to what many believed would be BTC’s price action in April.
According to data provided by Santiment, the dominance BTC has on altcoins like ETH is now decreasing. The data pointed out how Ethereum has closed the gap on Bitcoin’s dominance over the past couple of months. With its latest ATH coming when BTC has continued to struggle, it may signal a slight shift in the way the crypto-market is likely to function going forward.
During last week’s downtrend, when ETH found itself moving in, the price fell to around $2.2k. However, it was able to bounce back up. Interestingly, over a similar time frame, the altcoin also saw a very noticeable and substantial surge in address activity, one that eventually culminated in the price hitting a new ATH.
For traders, the bullish outlook towards ETH is warranted as the coin doesn’t seem vulnerable to a short-term price correction despite its high price. Instead, ETH has a good share of investors who have hodled the coin for more than a year and are confident of its long-term prospects and this trend is likely to continue.
The network is also secure and according to Glassnode’s data, ETH’s hash rate hit a new ATH today. This has been growing over the past few months and consecutive ATHs seem to be fairly regular. In addition to this, for most traders, ETH continues to be a lucrative bet with the surging price being able to bounce back quicker than BTC. Glassnode also reported that the number of ETH addresses in profit (7d MA) just reached yet another high of 57,488,552.762.
These metrics add up to articulate an extremely bullish scenario for ETH in the coming month. This also substantiates the possibility of the altcoin hitting the coveted $3,000 price range in the coming weeks if unhindered by a BTC-induced market shakeup.
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